Question: If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it is paying 100,000 euros in 90 days, it could: A)

If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it is paying 100,000 euros in 90 days, it could:

A) obtain a 90day forward purchase contract on euros.
B)

obtain a 90day forward sale contract on euros.
C)

purchase euros 90 days from now at the spot rate.
D)

sell euros 90 days from now at the spot rate.

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