Assume That a Canadian Exporter Sells to a French Importer

Assume that a Canadian exporter sells to a French importer and denominates the sale in euros,which opens the exporter up to foreign exchange risk. Also,assume that the exporter goes to its investment bank and enters into a contract with the bank to gain the right but not the obligation to deliver euros for Canadian dollars at an agreed-upon exchange rate. This is an example of a ________.

A) lead strategy
B) lag strategy
C) foreign-currency option
D) forward contract