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A U.S. exporter has sold wool carpets to a buyer in Italy. The payment term of the transaction is net 60; the currency of the
A U.S. exporter has sold wool carpets to a buyer in Italy. The payment term of the transaction is net 60; the currency of the transaction is Eurodollars. The carpets have been shipped. To minimize its exposure, the U.S. exporter should:
Immediately enter into a spot transaction for the purchase of Eurodollars
Sell Eurodollars in 60 days on the spot market
Enter into a 60 day forward contract to sell Eurodollars
Enter into a 60 day forward contract to purchase Eurodollars
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