Question: Problem 4. (Multiple choice, 1 point) Fruit Border is a US company exporting corn to Spain and getting paid in Euros. Company's funding is in

 Problem 4. (Multiple choice, 1 point) Fruit Border is a US

Problem 4. (Multiple choice, 1 point) Fruit Border is a US company exporting corn to Spain and getting paid in Euros. Company's funding is in U.S. dollars. Which of the following is not a possible corporate hedging strategies to hedge Fruit Border's account receivables. U.S. Dollar one-year loan rate Euro one-year loan rate Spot exchange rate One-year forward exchange rate 3% 3.5% 2/$ 2.1/$ A. Buy US dollar forward contracts B. Use money market to match currency of assets and liabilities (by borrowing euros) C. Switch funding to Euros, despite the slightly higher cost. D. Use US dollar call options

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