business question 5 economics reply

International Economies, by Robert J. Carbaugh that one is the call option which gives a buyer to buy an foreign item at specified price and then other side you have the put option which gives a person the right to sell foreign currency at a certain price. If the company will lose money on a product the can add a fee to cover the lost money to the buyer. The book states a example: The company Boeing submits a sale for jet planes to Japan and Boeing company is worried about winning the bid but if they do win the currency change price.

Agree or disagree within 2-3 sentences

 

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