Your U.S. firm has a £100,000 payable with a 3-month maturity. Which of the following will hedge your liability?
A) Buy a call option on £100,000 with a strike price in euro.
B) Buy a put option on £100,000 with a strike price in dollars.
C) Buy a call option on £100,000 with a strike price in dollars.
D) None of the above
Correct Answer:
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