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Fluor Corporation Has Just Made a French Franc Bid on a Major

Question 2

Multiple Choice

Fluor Corporation has just made a French franc bid on a major project located in France. It won't find out for 60 days whether it has won the contract. The best way to protect against currency risk on its bid is for Fluor to


A) buy a franc futures contract
B) sell a franc call option
C) sell a franc futures contract
D) buy a franc put option

Correct Answer:

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