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A UK company has just provided a service to a US company for $750,000. Settlement is due in two months' time and the UK company

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A UK company has just provided a service to a US company for $750,000. Settlement is due in two months' time and the UK company wants to hedge the risk of a fall in the value of the US dollar over the next two months. The following methods of hedging this risk have been suggested: 1. Buy sterling put options now 2. Buy sterling futures now 3. Buy sterling call options now 4. Sell sterling futures now Which two of the above suggestions would provide a hedge against the exchange rate risk? A 2 and 4 B 1 and 4 1 and 3 0 2 and 3

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