Which of the Following Would Be an Effective Hedge

question 34

Multiple Choice

Which of the following would be an effective hedge?

• A)Sell 53 Israeli shekels forward at the 1-year forward rate, F₁($/IS), that prevails at time zero.
• B)Buy 53 Israeli shekels forward at the 1-year forward rate, F₁($/IS), that prevails at time zero.
• C)Sell 12,898 Israeli shekels forward at the 1-year forward rate, F₁($/IS), that prevails at time zero.
• D)None of the above

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