A U.S. corporation with net receivables in euro could hedge by _________________. A. buying euro forward...
A U.S. corporation with net receivables in euro could hedge by _________________.
A. buying euro forward
B. selling euro forward
C. buying euro futures
D. buying euro call options
E. both B and D
Homework Answers
Option "C" is correct.
The U.S. corporation could agree to a futures contract to sell euros at a specified date in the future and at a specified price. This locks in the exchange rate at which the euros could be sold.
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A U.S. corporation with net receivables in euro could hedge by
_________________.
A. buying euro forward...
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