An Australian company which has cash outflows denominated in New Zealand dollars would like to protect themselves against foreign exchange rate risk. Which of the following choices could the company pursue to achieve their goal?

A. Buy call options on New Zealand dollars.

B. Buy put options on New Zealand dollars.

C. Sell a futures contract on New Zealand dollars.

D. All of the above.

There is a positive relationship between the value of a call option and time until expiration.

True

False