Multiple Choice
A U.S.export company scheduled to receive 1 million pounds six months from today can hedge its foreign exchange risk by:
A) Buying today 1 million pounds in the forward market for delivery in six months
B) Buying 1 million pounds in the spot market for delivery in six months
C) Selling 1 million pounds in the spot market for delivery in six months
D) Selling today 1 million pounds in the forward market for delivery in six months
Correct Answer:
Verified
Correct Answer:
Verified
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