A U$.$S$.$ irrestor borrows yen, converts the funds to U$.$S$.$ dollars, and invests the dollars in U$.$S$.$ assets. To hedge against exchange rate risk when the yen loan must be repaid in three months, the investor should:

Do noting$-$the inkerest rate differential eliminutes the feed for hedging.

Enter a formard contract to sell dollars in thee months.

Ender a forward contract to sett yen in three months.

Enter a forwart contract todiry to buy yen in there monetis.