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An importer in the United States is due to take delivery of clothing from Mexico in six months. The price is fixed in Mexican pesos. Which of the following transactions could eliminate the importer's exchange risk?

a. Sell six-month call options on pesos.

b. Buy pesos forward.

c. Sell pesos forward.

d. Sell pesos in the currency futures market.

e. Borrow pesos; buy dollars at the spot exchange rate.

f. Sell pesos at the spot exchange rate; lend dollars.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M951340

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