To hedge a ____ in a foreign currency, a firm may ____ a currency futures contract for that currency.
A)receivable; purchase
B)payable; sell
C)payable; purchase
D)none of the above

Question

Quizplus · Accepted Answer

To hedge a payable in a foreign currency, a firm may purchase a currency futures contract to lock in the exchange rate at which it will buy the foreign currency in the future.

To Hedge a ____ in a Foreign Currency, a Firm