Question: QUESTION 2 Consider an investor based in the DC that invests in the FC. To hedge the FX risk the DC investor could (select all
QUESTION 2 Consider an investor based in the DC that invests in the FC. To hedge the FX risk the DC investor could (select all that are true); Purchase a futrues contract FC to DC for the return trip Exercise a futures contract DC to FC at the date of the investment return trip Engage in a forward DC to FC, if counter-party risk is negligible Engage in a swap for FC at the investment's open date to DC at the invesment's close date Write a call option DC to FC at today's spot FX rate U Purchase a put option DC to FC at today's spot FX
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