An e-commerce company based in the United Kingdom is planning to launch a new market in Australia and is concerned about potential volatility in the Australian dollar. Which hedging strategy(s) would be suitable to manage the currency risk in this scenario? Choose all that apply. Purchasing a call option on the Australian dollar Selling Australian dollars forward against the British pound Purchasing a put option on the Australian dollar

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An e-commerce company based in the United Kingdom
is planning to launch a new market in Australia and is
concerned about potential volatility in the Australian dollar.
Which hedging strategy(s) would be suitable to manage the
currency risk in this scenario? Choose all that apply.
Purchasing a call option on the Australian dollar
Selling Australian dollars forward against the British pound
Purchasing a put option on the Australian dollar
Transcribed Image Text:An e-commerce company based in the United Kingdom is planning to launch a new market in Australia and is concerned about potential volatility in the Australian dollar. Which hedging strategy(s) would be suitable to manage the currency risk in this scenario? Choose all that apply. Purchasing a call option on the Australian dollar Selling Australian dollars forward against the British pound Purchasing a put option on the Australian dollar
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