Company wishes to borrow in 90 days but wishes to lock in the cost of borrowing. Identify the best strategy to hedge and to raise the funds.

Select one:

a.Company should buy a 90-day bank bill on the futures market and then sell it in 180 days in the money market.

b.Company should buy a 90-day bank bill on the futures market, sell it in 90 days on the futures market and then issue a bill in the money market.

c.Company should sell a 180-day bank bill on the futures market and then buy it in 90 days in the money market.

d.Company should sell a 90-day bank bill on the futures market, buy it in 90 days on the futures market and then issue a bill in the money market.