Multiple Choice
If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it is receiving 100,000 in 90 days, it could:
A) obtain a 90-day forward purchase contract on euros.
B) obtain a 90-day forward sale contract on euros.
C) purchase euros 90 days from now at the spot rate.
D) sell euros 90 days from now at the spot rate.
Correct Answer:
Verified
Correct Answer:
Verified
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