Describe all possible ways with clear explanations

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The transactions listed below are anticipated by U.S. firms that have no other foreign transactions. Describe all possible ways with clear explanations (forward, futures, options) that can be used to hedge each of the transactions.

a. Piedmont Co. plans to sell its goods to a Japanese customers denominated in yen.

b. ABC Inc., bought goods from UK denominated in British pounds.

c. Microsoft Corp. has a subsidiary in Australia that will be remitting funds to the U.S. parent.

d. Redheart, Inc., needs to pay off existing loans that are denominated in Mexican peso.

e. XYZ Co. may purchase a company in Japan in the near future (but the deal may not go through).

Reference no: EM131034548

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