Linden Co
Subject:BusinessPrice:1.87 Bought7
Linden Co. has 1,000,000 euros as payables due in 90 days, and is certain that euro is going to depreciate substantially over time. Assuming the firm is correct, the ideal strategy is to:
a. sell euros forward
b. purchase euro currency put options.
c. purchase euro currency call options.
d. purchase euros forward.
e. remain unhedged
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Answer:
linden Co. has 1,000,000 euros as payables due in 90 days and is certain that the euro is going to depreciate substantially over time. Assuming the firm is correct, the ideal strategy is to:
e) remain unhedged
