You Are an International Exporter with Most of Your Sales

question 66

Multiple Choice

You are an international exporter with most of your sales coming from Germany. You are concerned about fluctuations in the Euro versus dollar exchange rate. Since your sales are fairly predictable, your best bet for minimizing exchange rate risk is:

• A) Entering into a currency swap.
• B) Entering into an interest rate swap.
• C) Entering into a commodity swap.
• D) Cross-hedging with English pounds.
• E) Cross-hedging with LIBOR.