_____ a Domestic Importer Has an FX Payable That Is

Multiple Choice

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