MCQOPTIONS
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| 1. |
Which of the following is the most likely strategy for a UK firm that will be receiving 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. | sell a futures contract on francs. |
| C. | obtain a forward contract to purchase francs forwa |
| Answer» C. obtain a forward contract to purchase francs forwa | |