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If a UK firm wants to ensure that there is a maximum sterling amount that it will have to pay for a future liability in
If a UK firm wants to ensure that there is a maximum sterling amount that it will have to pay for a future liability in Swiss francs but wants to be able to benefit if the Swiss franc depreciates substantially against sterling by the time payment is made, the most appropriate strategy would be to
A. | purchase Swiss franc call options | |
B. | purchase Swiss franc put options | |
C. | enter a forward contract to sell sterling for Swiss francs | |
D. | borrow sterling now, change it into Swiss francs and invest these in a Swiss franc deposit account |
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