$16.$ Hedging with Currency Derivatives. Assume that the transactions listed in the first column of the table below are anticipated by U$.$S$.$ firms that have no other foreign transactions. Place an X in the table wherever you see possible ways to hedge each of the transactions

Forward

Forward

Buy

Sale

Futures

Sell

Purchase

Purchase

Purchase

Futures

a Call

a Put

a$.$ Georgetown Co$.$ plans to purchase Japanese goods denominated in yen.

b$.$ Harvard, Inc., will sell goods to Japan, denominated in yen.

c$.$ Yale Corp. has a subsidiary

in Australia that will be remitting funds to the U$.$S$.$ parent.

d$.$ Brown, Inc., needs to pay off existing

loans that are denominated in

Canadian dollars.

e$.$ Princeton Co$.$ may purchase a

company in Japan in the near future

$($but the deal may not go through$).$