Suppose you invest in German government bonds, denominated in euros. You will receive your interest and principal back in one year. In order to hedge your currency risk, you should: Buy put options on the euro Sell call options on the euro Buy futures on the euro Sell put options on the euro Question 9 (2.5 points) A disadvantage of the freely floating exchange rate system is that it can unfavorably affect a country with low inflation. True False Question 10 (2.5 points) Advantages of the European monetary union do NOT include: reduced capital flows within Europe elimination of exchange rate risk between participating countries more trade flows within Europe