Buckingham Inc

question 14

Multiple Choice

Buckingham Inc., a British corporation, owes Canuck Inc., a Canadian corporation, $1 million due in two months.How can Buckingham hedge the exchange risk?

• A)Sell pounds in the spot market.
• B)Buy pounds in the forward market.
• C)Sell Dollars in the spot market.
• D)Buy Dollars in the forward market.

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