Assume You Are an American Exporter and Expect to Receive

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