Question: If a U . S . firm desires to avoid the risk from exchange rate fucturions, and its receiving 1 0 0 , 0 0
If a US firm desires to avoid the risk from exchange rate fucturions, and its receiving in days, it could:
obtain a day forward purchase contract on euros.
obtain a day forward sale contract on euros.
Purchase euros $ days from now at the spot rate.
seil euros days from now at the spot rate.
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