Which of the Following Is the Most Unlikely Strategy for a UK

question 54

Multiple Choice

Which of the following is the most unlikely strategy for a UK firm that will be purchasing 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) Obtain a forward contract to purchase francs forward.
• C) Sell a futures contract on francs.
• D) All of the above are appropriate strategies for the scenario described.

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