If the Foreign Currency Is Expected to Appreciate to a Value

Multiple Choice

If the foreign currency is expected to appreciate to a value lower than the appropriate forward rate:

A) a hedger will hedge foreign receivables by buying the foreign currency forward
B) a hedger will hedge foreign receivables by selling the foreign currency forward
C) a hedger will not hedge foreign receivables
D) a hedger will regret his decision to hedge foreign receivables if the foreign currency is lower than the forward rate at maturity