Multiple Choice
If you have a commitment to pay a friend in Britain 1,000 pounds in 30 days, you could remove the risk of loss due to the appreciation of the pound by
A) buying dollars in the forward market for delivery in 30 days.
B) selling dollars in the forward market for delivery in 30 days.
C) buying the pounds in the forward market for delivery in 30 days.
D) selling the pounds in the forward market for delivery in 30 days.
Correct Answer:
Verified
Correct Answer:
Verified
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