_____ 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 wishes to report (a) a gain if the exchange rate changes favorably and (b) no loss if the exchange rate changes unfavorably. If the importer's policy is to use only FX forwards (and not options) , 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) Be unable to always accomplish these objectives using FX forwards.