Suppose your firm needs to hedge against exchange rate risk, but the hedging need is uncertain and the firm would like the ability to very quickly and easily cancel the hedge at any time. Which of the following choice is the most appropriate in terms of the ability to quickly and easily cancel the hedge at any time?

a.A forward contract

b.A futures contract

c.A currency swap

2.

Suppose the U.S. dollar-Japanese Yen exchange rate is 111.00 = $1.00. At this exchange rate, how many dollars would it take you to purchase 1,000 yen? (Round to the nearest penny.)

	a.	$8.93
	b.	$9.01
	c.	$8,928.57
	d.	$9,009.01
	e.	$0.07972
	f.	$0.08116