1.Which of the following is a basic hedging technique during the time of local currency depreciation?

Group of answer choices

buy local currency forward

sell a local currency put option

loosen credit (increase local currency receivables)

reduce levels of local currency cash and marketable securities

2. In the above example of a US firm having the euro receivables due in six months, the money market hedge would involve:

Group of answer choices

Convert dollar to euro at spot

Convert euro to dollar at spot

Borrow euro for eight months

Borrow dollar for six months