A Company Knows It Will Have to Pay a Certain

Multiple Choice

A company knows it will have to pay a certain amount of a foreign currency to one of its suppliers in the future.Which of the following is true

A) A forward contract can be used to lock in the exchange rate
B) A forward contract will always give a better outcome than an option
C) An option will always give a better outcome than a forward contract
D) An option can be used to lock in the exchange rate