If a Firm Is Due to Be Paid in Euros

question 87

Multiple Choice

If a firm is due to be paid in euros in two months, to hedge against exchange rate risk the firm should ________.

• A) sell foreign exchange futures short
• B) buy foreign exchange futures long
• C) stay out of the exchange futures market
• D) buy foreign exchange forward contracts long

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Definitions:

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DSM

A comprehensive classification system for mental disorders, published by the American Psychiatric Association, utilized worldwide by clinicians.

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