Assume that the country of Dreeland has a currency $($called the dree$)$ that tends to move in tandem with the Chilean peso and is expected to continue to move in tandem with the Chilean peso in the future. Indianapolis Co$.,$ a U$.$S$.$ firm, has a large amount of receivables denominated in dree. It expects that the dree will depreciate against the dollar over time. There are no derivatives available on the dree. Indianapolis Co$.$ considers the following strategies to reduce its exchange rate risk.

a$.)$ use a money market hedge in which it converts dollars into dree and maintains a deposit denominated in dree for one year

b$.)$use a forward contract to purchase Chilean pesos forward

c$.)$sell a put option hedge on Chilean pesos

d$.)$purchase a call option on Chilean pesos

e$)$use a forward contract in which it sells Chilean pesos forward

Which strategy is most appropriate?

Strategy is most appropriate.