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21. The managers of Globe Advisors Fund are taking significant positions in Japanese stocks for an intended holding period of three years. However, they believe

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21. The managers of Globe Advisors Fund are taking significant positions in Japanese stocks for an intended holding period of three years. However, they believe that the USD (US Dollar) will strengthen against the JPY (Japanese yen) in the coming year. They are therefore planning to hedge the yen exposure through derivatives for the coming year. Advise them on the following, along with your reasoning for the decision: a. Explain why they should use currency options and not futures. Why? b. If they use currency options on the JPY, whether they should buy OR sell calls OR puts and why

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