If a Company Has a YEN 1 000 000 Account

Multiple Choice

If a company has a YEN 1 000 000 account receivable in three months and it expects the AUD to depreciate by the time of payment,a reasonable strategy would be to:

A) lead the payment cash flow.
B) borrow the present value of YEN 1 000 000 and do a money market hedge in the Australian market.
C) enter into a forward exchange contract to sell YEN in three months' time.
D) lag the payment cash flow.