Multiple Choice
Assume you are an American exporter and expect to receive 50 pounds sterling at the end of 60 days.You can remove the risk of loss due to a devaluation of the pound sterling by
A) selling sterling in the forward market for 60-day delivery.
B) buying sterling now and selling it at the end of 60 days.
C) selling the dollar equivalent in the forward market for 60-day delivery.
D) keeping the sterling in Britain after it is delivered to you.
Correct Answer:
Verified
Correct Answer:
Verified
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