question archive You are a finance manager for a Spanish MNE
You are a finance manager for a Spanish MNE
Subject:FinancePrice: Bought3
You are a finance manager for a Spanish MNE. Your firm has just received an invoice for goods you purchased from a US company. The invoice is denominated in US Dollars. You expect to make payment in 90 days.
You wish to hedge against a possible _______ in the value of the Dollar and choose _________ as the most appropriate hedging technique/instrument.
(a) rise; a 90-day call option on the Dollar
(b) rise; factoring
(c) fall; a 90-day put option on the Dollar
(d) fall; a "short" 90-day futures contract on the Dollar (e) None of the above
