A South Korean company imports from the U.S. and pays in U.S. dollars. The spot exchange rate is $1054 won and the forward rate is the same. The South Korean company expects the U.S. dollar to appreciate against the won. The South Korean company could protect its position by:

a). entering into a hedge buying dollars forward.
b). entering into a hedge selling dollars forward.
c). entering into locational arbitrage.
d). entering into triangular arbitrage.
e). none of the above.

Answer rating: 100% (QA)

Answer a entering into a hedge buying dollars forward A currency forward is a bi... View the full answer