An American importer of English clothing has contracted to pay an amount fixed in British pounds three months from now. If the importer worries that the US dollar may depreciate sharply against the British pound in the interim, it would be well advised to a. Buy pounds in the forward exchange market. b. Sell pounds in the forward exchange market. c. Buy dollars in the futures market. d. Sell dollars in the futures market.
An American importer of English clothing has contracted to pay an amount fixed in British pounds three months from now. If the importer worries that the US dollar may depreciate sharply against the British pound in the interim, it would be well advised to a. Buy pounds in the forward exchange market. b. Sell pounds in the forward exchange market. c. Buy dollars in the futures market. d. Sell dollars in the futures market.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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An American importer of English clothing has contracted to pay an amount fixed in British pounds three months from now. If the importer worries that the US dollar may
a. Buy pounds in the forward exchange market.
b. Sell pounds in the forward exchange market.
c. Buy dollars in the futures market.
d. Sell dollars in the futures market.
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