Question: How can exchange - rate risk be hedged using forward, futures, and options contracts? A . Firms can buy forward contracts to hedge against a
How can exchangerate risk be hedged using forward, futures, and options contracts?
A
Firms can buy forward contracts to hedge against a fall in the exchange rate.
B
Firms can buy a call option to hedge against a fall in the exchange rate.
C
Firms can buy a put option to hedge against a fall in the exchange rate.
D
All of the above.
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