Dell Inc. produces its machines in Asia with components largely imported from the U.S. and sells its products in various Asian nations in local currencies. Suppose Dell wishes to lock in a specific conversion rate but does not want to foreclose the possibility of profiting from future currency moves. What hedging technique would be most likely to achieve this objective?
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buy forward contract |
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buy put option |
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buy futures contract |
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buy call option |
Buy a put option
By buying a put option sell will lock in a lower floor price to convert the currency with no obligation to do that
Dell Inc. produces its machines in Asia with components largely imported from the U.S. and sells...