Suppose a financial manager has payables due in Pound Sterli

Suppose a financial manager has payables due in Pound Sterling. If the manager believes the Pound Sterling will appreciate in the near term, she might want to use a PUT OPTION to reduce her TRANSACTIONS EXPOSURE.

If this is true of false?

Solution

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Suppose a financial manager has payables due in Pound Sterling. If the manager believes the Pound Sterling will appreciate in the near term, she might want to use a PUT OPTION to reduce her TRANSACTIONS EXPOSURE.

Statement is False