If a U.S.company wants to hedge a prospective loss on its investment in a foreign entity that may result from a foreign currency fluctuation,the U.S.company should
A)purchase a forward to swap currency of the foreign entity's local country for U.S.currency.
B)purchase a call option to buy currency of the foreign entity's local country.
C)issue a loan in the foreign entity's local country.
D)borrow money in the foreign entity's local country.

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The Answer of If a U.S.company wants to hedge a prospective loss on its investment in a foreign entity that may result from a foreign currency fluctuation,the U.S.company should
A)purchase a forward to swap currency of the foreign entity's local country for U.S.currency.
B)purchase a call option to buy currency of the foreign entity's local country.
C)issue a loan in the foreign entity's local country.
D)borrow money in the foreign entity's local country.

If a USCompany Wants to Hedge a Prospective Loss on Its Investment