Hedging exchange rate risk

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Reference no: EM13116030

Hedging Exchange Rate Risk. An importer in the United States is due to take delivery of silk scarves from Europe in 6 months. The price is fixed in euros. Which of the following transactions could eliminate the importer's exchange risk?

a. Buy euros forward
b. Sell euros forward
c. Borrow euros , buy dollars at the spot exchange rate
d. Sell euros at the spot exchange rate, lend dollars

Reference no: EM13116030

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