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ABC INC., a U.S. MNC, has an accounts payable obligation of 750 million payable in one year to a bank in Japan. Which of the

ABC INC., a U.S. MNC, has an accounts payable obligation of 750 million payable in one year to a bank in Japan. Which of the choices below is not part of a money market hedge?

Buy the 750 million at the forward exchange rate.

Buy that much yen at the spot exchange rate.

Invest in risk-free Japanese securities with the same maturity as the accounts payable obligation.

Find the present value of 750 million at the Japanese interest rate.

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