Question 22 (3.03 points)

A Spanish firm will need to pay C$2 million (i.e., two million Canadian dollars) in 3 months. It expects that Canadian dollar will depreciate, but it still wants to hedge its risk. What type of hedging is more appropriate in this situation?

Question 22 options:

	It could obtain a 3-month forward purchase contract on Canadian dollars (i.e., buy a 3-month forward contract on Canadian dollars).
	It could purchase a 3-month call options on Canadian dollars.
	It could purchase a 3-month put options on Canadian dollars.
	It could obtain a 3-month forward sale contract on Canadian dollars (i.e., sell a 3-month forward contract on Canadian dollars).