XYZ America Corporation has an accounting payable in yen due in one year. Which forward hedge would be most effective?

Group of answer choices

Buy dollar forward now

Buy yen forward now

Buy yen forward in one year

Buy dollar forward in one year

In the face of appreciating yen in real terms, Honda should consider:

Group of answer choices

coming out with new cars targeted at the high end of the market

economizing and reducing cost

investing in US production facilities

All answers

A US industrial firm has exported goods to a German firm, invoiced in euro, due in six months (i.e., the US firm has an account receivable in euro). If the firm is considering options for hedge, which of the following is most appropriate?

Group of answer choices

Sell euro call

Sell euro put

Buy euro put

Buy euro call

A US Corporation has just made a bid on a major project located in UK. If the project is awarded, the company will receive a sizeable down payment in pound upfront. However, it wont find out for 60 days whether it has won the contract. The best way to protect against currency risk on its bid is for the firm to

Group of answer choices

buy a pound put option

buy a pound futures contract

buy a pound call option

sell a pound futures contract

If you think that the dollar is going to appreciate against the euro

Group of answer choices

Two of the other answers are correct

You should buy put options on the euro

You should buy call options on the dollar

You should buy call and put options on the dollar