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questions 1 and 2 please AU.S. firm has borrowed 50 million (British pounds) from a British firm. The borrower will need to convert dollars to

questions 1 and 2 please image text in transcribed
AU.S. firm has borrowed 50 million (British pounds) from a British firm. The borrower will need to convert dollars to British pounds to repay the loan when it is due. The U.S. firm could hedge the exchange rate risk by A. Both Band C would hedge the risk 8. Buying pounds forward OC. Both A and C would hedge the risk OD. Borrowing pounds O E Selling pounds forward QUESTION 2 AU.S. batik borrowed dollars, converted them to Swiss franes and invested in Swiss frane denominated CDs to take advantage of interest rato To cover the currency risk the investor should O A Sell dollars forward different Buy Swiss franes forward C.Sell Swiss francs forward

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