In 1985 a German corporation bought $250 million forward to cover a future purchase of goods from the United States. However, the dollar subsequently depreciated and the company found that, if it had waited and then bought the dollars spot, it would have paid 225 million deutschmarks (DM) less. One financial manager pointed out that the company could have waited to buy the dollars and meanwhile covered its exposure by using options. In that case it would have saved itself 225 million DM and would have lost only the cost of the option—around 20 million DM.29 Evaluate the company’s decision and the financial manager’s criticism.