An Australian Company Has Contracted to Buy a Piece of Machinery

Multiple Choice

An Australian company has contracted to buy a piece of machinery produced in Japan,with delivery in six months and payment to be made in Japanese yen.How can this company reduce its foreign exchange risk?

A) Go short yen in the futures market
B) Purchase a put option on yen
C) Sell goods in Japan to be paid in six months
D) All of the given choices