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An American truck exporter has sold some of them to Europe. The payment will be received in 6M for an amount of 1 Million EUROS.

An American truck exporter has sold some of them to Europe. The payment will be received in 6M for an amount of 1 Million EUROS. To avoid currency risk, he could now...

Sell 1MM EUR Forward

Buy a 6M PUT EUR that allows him to sell the EUR at minimum price

Buy a 6M PUT EUR and finance it by Selling a 6M CALL EUR, doing a Risk Reversal strategy

All of the above

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