You are a French wine producer who has a contract to sell $10,000,000 worth of wine in the U.S.for dollars 6 months in the future.If you would like to hedge this position,what could you do to hedge the currency risk involved in transaction?
A) buy dollars and sell euros in the forward market
B) sell dollars and buy euros in the forward market
C) buy euros and sell dollars in the spot market
D) sell dollars and buy euros in the spot market
Correct Answer:
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