When considering currency options contracts as a hedging tool compared with forward contracts:

		The main advantage of using options contracts for hedging is that the hedger can decide whether to exercise options upon observing the realized future exchange rate.
		Options provide a hedge against ex post regret that forward hedgers might have to suffer.
		Forward hedgers can only eliminate the downside risk while retaining the upside potential.
		Both a. and b. are correct.

In the event of a payment default when forfaiting takes place:

		The forfait does not have recourse against the exporter in the event of a default by the importer.
		The forfait does have recourse against the exporter in the event of a default by the importer.
		The exporter will have to return the goods to the importer.
		None of the above.

		The main advantage of using options contracts for hedging is that the hedger can decide whether to exercise options upon observing the realized future exchange rate.
		Options provide a hedge against ex post regret that forward hedgers might have to suffer.
		Forward hedgers can only eliminate the downside risk while retaining the upside potential.
		Both a. and b. are correct.