Question
A British multinational corporation is expected to makea payment denominated in US dollars 9 months from today.How could the British firm reduce its exchange rate
A British multinational corporation is expected to makea payment denominated in US dollars 9 months from today.How could the British firm reduce its exchange rate risk?
A. Sell a 9 month forward contract on dollars.
B. Sell a 9 month futures contract on dollars.
C. Wait 9 months and purchase dollars in the spot market.
D. Buy a 9 month futures contract on dollars.
E. None of the above.
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
