Which of the following reflects a hedge of net payables in British pounds by a U.S. firm?
A) Purchase a currency put option in British pounds.
B) Sell pounds forward.
C) Sell a currency call option in British pounds.
D) Borrow U.S. dollars, convert them to pounds, and invest them in a British pound deposit.
E) Purchase a currency put option in British pounds AND sell pounds forward.

Question

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The Answer of Which of the following reflects a hedge of net payables in British pounds by a U.S. firm?
A) Purchase a currency put option in British pounds.
B) Sell pounds forward.
C) Sell a currency call option in British pounds.
D) Borrow U.S. dollars, convert them to pounds, and invest them in a British pound deposit.
E) Purchase a currency put option in British pounds AND sell pounds forward.

Which of the Following Reflects a Hedge of Net Payables