A corporation wishing to hedge its exposure to receivables could Purchase a currency futures contract (or contracts) representing the currency and amount related to the payables: Borrow the currency denominating the recervables, convert it to the local currency, and invest it. Then pay off the loan with cash Purchase a currency call option (or options) representing the currency and amount related to the payables. Negotiate a forward contract to purchase the amount of foreign currency needed to cover the payables