Multiple Choice
A U.S.export company scheduled to receive 1 million pounds six months from today can hedge its foreign exchange risk by
A) buying 1 million pounds in the forward market today for delivery in six months.
B) buying 1 million pounds in the spot market for delivery in six months.
C) selling 1 million pounds in the spot market for delivery in six months.
D) selling 1 million pounds in the forward market today for delivery in six months.
Correct Answer:
Verified
Correct Answer:
Verified
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