What is the appropriate action for roberts

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Question - Roberts has a 50,000 foreign currency payable due in 90 days. What is the appropriate action for Roberts to take today if it wishes to hedge its foreign exchange exposure.

A. enter into an FX forward today that will mature in 90 days, buying foreign currency and selling US dollars.

B. enter into an FX forward today that will mature in 90 days, buying US dollars and selling foreign currency.

C. buy an FX option today that will give Roberts the right but not the obligation to sell 50,000 foreign currency and buy US dollars in 90 days.

D. enter into an FX spot contract today, purchasing US dollars and selling foreign currency.

E. sell an FX option today to a Bank giving the Bank the right but not the obligation to sell to Roberts 50,000 foreign currency and buy US dollars in 90 days.

Reference no: EM132541156

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