

MCQOPTIONS
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1. |
Which of the following is the most likely strategy for a UK firm that will be receiving Swiss francs in the future and desires to avoid exchange rate risk (assume the firm has no offsetting position in francs)? |
A. | purchase a call option on francs. |
B. | sell a futures contract on francs. |
C. | obtain a forward contract to purchase francs forwa |
Answer» C. obtain a forward contract to purchase francs forwa | |