If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it has a receivable of 100,000 in 90 days, it could hedge by: (indicate all that are possible)

1). obtaining a 90 day forward buy contract on euros.

2). Buying a 90-day put option on the euro

3). Selling euros 90 days from now at the spot rate

4). Borrowing now (for 90 days), exchanging in $ now.

A. 1, and 2 only

B. 2 and 4 only

C. 1, 2, and 3 only

D. 1, 3, and 4 only

E. 2, 3, and 4 only

(Thank You!)