Which of the following would be an effective hedge?
A) Sell 2,500 forward at the 1-year forward rate, F1($/ ) , that prevails at time zero.
B) Buy 2,500 forward at the 1-year forward rate, F1($/ ) , that prevails at time zero.
C) Sell 25,000 forward at the 1-year forward rate, F1($/ ) , that prevails at time zero.
D) None of the above
Correct Answer:
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