Question: Question 19 2 pts Hedging a receivable with a forward contract differs from using an option because: The amount of money received is certain with

Question 19 2 pts Hedging a receivable with a forward contract

Question 19 2 pts Hedging a receivable with a forward contract differs from using an option because: The amount of money received is certain with a forward contract while the amount using an option-based strategy depends on exchange rates in the future The forward contract requires a company to pay in advance while option strategies do not cost anything. Forward contracts only work if a foreign currency strengthens and option-based strategies only work if a foreign currency weakens There are no differences between the two approaches

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