1. If you have a foreign currency denominated receivable, you can hedge with:

Question 1 options:

	A long position in a put option.
	Borrow the home currency today and investing it in the foreign country.
	A long position in a currency forward contract.
	None of the answers is correct.

2. Buying a currency option provides

Question 2 options:

	limits the downside risk while preserving the upside potential
	a right, but not an obligation, to buy or sell a currency
	All of the answers are correct.
	a flexible hedge against exchange exposure