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If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it is paying 100,000 euros in 90 days, it could: A)
If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it is paying 100,000 euros in 90 days, it could:
A) obtain a 90day forward purchase contract on euros. | ||
B) | obtain a 90day forward sale contract on euros. | |
C) | purchase euros 90 days from now at the spot rate. | |
D) | sell euros 90 days from now at the spot rate. |
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