$(3$ pts$)$ The money market hedge and the forward hedge will yield the same results for hedging

$q,$ if IRP holds and there are no transaction costs.

A$.$ a receivable in foreign currency

B$.$ a payable in foreign currency

C$.$ both A and $B$

D$.$ Neither A nor B

$(3$ pts$)$ A U$.$S$.$ firm needs to hedge $10,000$ payable. Using a $q,$ the firm will pay out a predetermined dollar amount. option on GBP can ensure that

A$.$ call; no less than

B$.$ put; no less than

C$.$ call; no more than

D$.$ put; no more than

$(2$ pts$)$ A U$.$S$.$ firm that needs to hedge $10,000$ receivable should buy a $$ option on GBP$.$

A$.$ call

B$.$ put

$(2$ pts$)$ Which one of the following should be used to hedge contingent exposure?

A$.$ forward hedge

B$.$ money market hedge

C$.$ option hedge