An importer in the United States is due to take delivery of silk scarves from Europe in

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An importer in the United States is due to take delivery of silk scarves from Europe in 6 months. The price is fixed in euros. Which of the following transactions could eliminate the importer's exchange risk?
a. Buy euros forward.
b. Sell euros forward.
c. Borrow euros; buy dollars at the spot exchange rate.
d. Sell euros at the spot exchange rate; lend dollars.
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Fundamentals Of Corporate Finance

ISBN: 9781259087585

6th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan, Gordon Roberts

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