Multiple Choice
Which of the following is the most unlikely strategy for a U.S. firm that will be purchasing Swiss francs in the future and desires to avoid exchange rate risk (assume the firm has no offsetting position in francs) ?
A) Purchase a call option on francs.
B) Obtain a forward contract to purchase francs forward.
C) Sell a futures contract on francs.
D) All of these are appropriate strategies for the scenario described.
Correct Answer:

Verified
Correct Answer:
Verified
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