To hedge against a loss due to currency fluctuations, a U.S. importer of Swiss chocolate should:
A) Buy Swiss franc futures contracts
B) Sell Swiss franc futures contracts
C) First buy Swiss franc futures contracts and then sell them to buy U.S. dollar futures contracts
D) First buy dollar futures contracts and then sell them to buy Swiss franc futures contracts
E) Wait to purchase the Swiss chocolate until currency values stabilize
Correct Answer:
Verified
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