The current spot rate, 90-day forward rate, and your expectations for spot rates in 90 days for Swiss francs (SF) are shown in the following table:

Current Spot Rate	90-day Forward Rate	Expected Spot Rate in 90 days
$1.00 = 1.2914 SF 1.00 SF = $0.7744	$1.00 = 1.2900 SF 1.00 SF = $0.7752	$1.00 = 1.2618 SF to 1.2987 1.00 SF = $0.7700 to $0.7925

You have ordered a shipment of premier Swiss chocolate for your gourmet candy store in the amount of 10,000 Swiss francs. At the current spot rate of $0.7744/SF, the shipment will cost you $7,744.00. However, as with most imports, you will not pay for the chocolate until delivery, which is due in 3 months. If the price of Swiss francs increases to the upper limit of your expected range, the cost of this shipment would increase to $7,925.00. To protect yourself against this increase by hedging in the forward market, which of the following actions would you take?

		Buy francs forward.
		Sell francs forward
		Borrow in the Swiss Money markets
		Short sell Swiss Equity securities