Which of the Following Is the Most Unlikely Strategy for a U.S

question 100

Multiple Choice

Which of the following is the most unlikely strategy for a U.S. 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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Definitions:

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The steps and thought processes consumers go through before purchasing a product or service, including need recognition, information search, evaluation, and purchase decision.

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