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Question 11 (2 points) A U.S. company imports goods from a foreign supplier and agrees to make payment in 50 days in the foreign currency
Question 11 (2 points) A U.S. company imports goods from a foreign supplier and agrees to make payment in 50 days in the foreign currency Why might the U.S.company enter into a forward contract? A) To offset the risk of the exposed asset decreasing in the event that the US $ strengthens against the foreign currency. B) To offset the risk of the exposed liability increasing in the event that the US$ weakens against the foreign currency. C) To offset the risk of the exposed liability increasing in the event that the US 5 strengthens against the foreign currency. D) To offset the risk of the exposed asset decreasing in the event that the US $ weakens against the foreign currency
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