Assume You Are a Chinese Exporter and Expect to Receive

question 48

Multiple Choice

Assume you are a Chinese exporter and expect to receive $250,000 at the end of 60 days. You can remove the risk of loss due to a devaluation of the dollar by:

• A)selling dollars in the 60-day forward exchange market.
• B)buying dollars now and selling these dollars at the end of 60 days.
• C)selling the yuan equivalent in the forward exchange market for 60-day delivery.
• D)keeping the dollars in the United States after they are delivered to you.

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