_____ a Domestic Exporter Has an FX Receivable That Is

Multiple Choice

_____ A domestic exporter has an FX receivable that is due in 90 days. The exporter never speculates in foreign currencies. The exporter wishes to assume no risk whatsoever that the exchange rate could change adversely and result in a loss. Accordingly, the exporter would

A) Enter into an FX forward to purchase a specified number of foreign currency units at a specified future date.
B) Enter into an FX forward to sell a specified number of foreign currency units at a specified future date.
C) Enter into an FX forward only if there is a belief that the direct exchange rate will increase.
D) Enter into an FX forward only if there is a belief that the direct exchange rate will decrease.
E) None of the above.