If I Am to Be Receiving a Large Quantity of Japanese

question 31

Multiple Choice

If I am to be receiving a large quantity of Japanese yen in 6 months, to hedge the risk that the exchange rate will change and eliminate my profit in dollars, I should

• A)sell a futures contract in yen.
• B)buy a futures contract in yen.
• C)buy a T-bill futures contract.
• D)only agree to accept dollars in the future.

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