Inmar Corporation Is a Mail-Order Company That Imports a Lot

question 57

Multiple Choice

Inmar Corporation is a mail-order company that imports a lot of its products from Switzerland. The firm must place its order six months in advance and must pay upon
Delivery. If the CFO is concerned that the dollar will depreciate relative to the Swiss franc, she
Could execute a hedge by

• A)buying put options on the Swiss franc.
• B)writing put options on the Swiss franc.
• C)writing call options on the Swiss franc.
• D)buying call options on the Swiss franc.