Your firm is a Swiss exporter of bicycles. You have sold an order to a French firm for €1,000,000 worth of bicycles. Payment from the French firm (in euro) is due in 12 months. Detail a strategy using futures contracts that will hedge your exchange rate risk. Have an estimate of how many contracts of what type and maturity. 
A) Go short 100 12-month euro futures contracts; and short 160 12-month SFr. futures contracts.
B) Go long 100 12-month € futures contracts; and long 160 12-month SFr. futures contracts.
C) Go long 100 12-month euro futures contracts; and short 160 12-month Swiss Franc futures contracts.
D) Go short 100 12-month euro futures contracts; and long 160 12-month Swiss Franc futures contracts.
E) None of the above
Correct Answer:
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Q35: Your firm is a U.S.-based exporter of
Q36: Your firm is a U.K.-based exporter of
Q37: Your firm is a Swiss exporter of
Q38: Your firm is a U.K.-based importer of
Q39: Your firm is an Italian exporter of
Q41: A Japanese IMPORTER has a €1,000,000 PAYABLE
Q42: A Japanese EXPORTER has a €1,000,000 receivable
Q43: Buying a currency option provides
A)a flexible hedge
Q44: A Japanese IMPORTER has a $1,250,000 PAYABLE
Q45: Your firm is a U.K.-based exporter of
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