answer the following

a. Which of the following is the most likely strategy for a U.S. firm that will be receiving Swiss francs in the future and desires to avoid exchange rate risk (assume the firm has no offsetting position in francs)?

A. purchase a call option on francs.

B. sell a futures contract on francs.

C. obtain a forward contract to purchase francs forward.

D. all of the above are appropriate strategies for the scenario described.

b. If you have a derivative position where you might be obligated to buy Japanese yen, you are a:

A. Call option writer/seller

B. Put option writer/seller

C. Call option buyer/holder

D. Put option buyer/holder

c. Buying a currency option provides

A. a flexible hedge against exchange exposure.

B. limits the downside risk while preserving the upside potential.

C. a right, but not an obligation, to buy or sell a currency.

D. all of the above