In the Context of Managing Exchange Rate Risks, When Companies

Multiple Choice

In the context of managing exchange rate risks, when companies take advantage of spot exchange rates, they:

A) buy foreign currency at present-day rates in anticipation of future transactions.
B) make an agreement with a bank to exchange currency at some future date.
C) simultaneously purchase and sell a given amount of currency at two different rates.
D) abandon their own country's currency to adopt the most stable currency in the international market.