Hedging-selecting correct futures hedge

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1. You're a US company with a customer that is going to pay you 10,000 Euros in six months. The correct futures hedge for this condition is to enter in a contract in which you buy Euros (True or False)

2. You are a US company that needs to pay a vendor 10,000 Euros 6 months from now. One option to hedge against foreign currency exchange risk might be to purchase Euros now (True or False).

3. You are a US company that needs to pay a vendor 10,000 in Euros 6 months from now. One option to hedge against foreign exchange risk might be to enter into the sell Euros via a futures contract (true or false)

Reference no: EM1344864

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