Assume you are an American exporter and expect to receive 50 pounds sterling at the end of 60 days.You can remove the risk of loss due to a devaluation of the pound sterling by:
A) Selling sterling in the forward market for 60-day delivery
B) Buying sterling now and selling it at the end of 60 days
C) Selling the dollar equivalent in the forward market for 60-day delivery
D) Keeping the sterling in Britain after it is delivered to you
Correct Answer:
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