A firm has SF1,000,000 payable in 30 days. The ideal strategy for hedging is? A)

Question

A firm has SF1,000,000 payable in 30 days. The ideal strategy for hedging is? A) sell SF forward. B)buy currency put option. C) sell SF futures D) purchase SF forward Please choose the correct answer A firm has SF1,000,000 payable in 30 days. The ideal strategy for hedging is? A) sell SF forward. B)buy currency put option. C) sell SF futures D) purchase SF forward Please choose the correct answer A) sell SF forward. B)buy currency put option. C) sell SF futures D) purchase SF forward Please choose the correct answer

Explanation / Answer

A firm has SF1,000,000 payable in 30 days, So ideal strategy for hedging against currency rate fkatuation is to "purchase SF forward "

Hence, Option (D) is correct answer.

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