If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it is receiving 100,000 in 90 days, it could:
A) obtain a 90-day forward purchase contract on euros.
B) obtain a 90-day forward sale contract on euros.
C) purchase euros 90 days from now at the spot rate.
D) sell euros 90 days from now at the spot rate.
Correct Answer:
Verified
Q9: A forward contract can be used to
Q10: Forward markets for currencies of developing countries
Q11: The international money market primarily concentrates on:
A)
Q12: The main participants in the international money
Q13: According to the text, the forward rate
Q15: The bid/ask spread for small retail transactions
Q16: The forward market:
A) for euros is very
Q17: _ is not a factor that affects
Q18: The Basel II accord is focused on
Q19: Which of the following is not true
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents