1. Your u.s. firm has a 150,000 payable with a 3-month maturity. Which of the following will hedge your liability?

a. Sell a put option on 150,000 with a strike price in dollars

b. Buy the present value of 150,00 today at the spot exchange rate and invest in the U.K. and i.

c. Take a short position in a forward contract on 150,000 with a 3-month maturity

d. Buy a put option on 150,000 with a strike price in dollars.

2. Which of the followinf would effectively hedge your exchange risk exposure?

a. Sell $$2,976,000forward

b. Sell $2,976,000forward

c. Buy $3,445,231 forward

d. Buy 3445231 forward