A French exporter of perfume has shipped merchandise to a U.S. customer under a 30 day time
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Question:
A French exporter of perfume has shipped merchandise to a U.S. customer under a 30 day time letter of credit. The letter of credit is denominated in U.S. dollars. To minimize its exposure, the French exporter should:
(a) Immediately sell U.S. dollars on the spot market
(b) Immediately buy U.S. dollars on the spot market
(c) Purchase a 30 day call option on U.S. dollars
(d) Purchase a 30 day put option on U.S. dollars
which one is the answer?
Related Book For
Accounting Information Systems basic concepts and current issues
ISBN: 978-0078025334
3rd edition
Authors: Robert Hurt
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