Question
QUESTION 24 If an Australian firm is receiving 100,000 pounds in 90 days and wishes to avoid the risk from exchange rate fluctuations, it could:
QUESTION 24 If an Australian firm is receiving 100,000 pounds in 90 days and wishes to avoid the risk from exchange rate fluctuations, it could:
a.purchase a 90-day forward contract on pounds.
b.sell a 90-day forward contract on pounds.
c.purchase pounds 90 days from now at the spot rate.
d.sell pounds 90 days from now at the spot rate.
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American Public School Finance
Authors: William Owings, Leslie Kaplan
2nd Edition
1111838046, 978-1111838041
