Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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How can exchange-rate risk be hedged using forward, futures,
and options contracts?
OA. Firms can buy a put option to hedge against a rise in
the exchange rate.
OB. Firms can buy a call option to hedge against a rise in
the exchange rate.
OC. Firms can sell forward contracts to hedge against a rise
in the exchange rate.
OD. All of the above.
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Transcribed Image Text:How can exchange-rate risk be hedged using forward, futures, and options contracts? OA. Firms can buy a put option to hedge against a rise in the exchange rate. OB. Firms can buy a call option to hedge against a rise in the exchange rate. OC. Firms can sell forward contracts to hedge against a rise in the exchange rate. OD. All of the above.
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