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Question
The Goudge Grilling Company has just ordered a shipment of grills from Frankfurt. Payment for the grills must be in euros when the grills are delivered. Euros have changed in value in the last 30 days. They have gone from $1.42 to $1.44. If this trend continues which of the following currency contracts can help the Goudge Grilling Company hedge their currency risk?
A. Put currency option
B. Short-hedge currency futures contract
C. Long-hedge currency futures contract
D. Currency swap contract
E. None of the options is correct.
Answer
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Related questions
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