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What can do to hedge the currency risk

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Reference no: EM132717951

Problem 1: If a U.S. importer that imports skin care products from Japan expects the Japanese Yen to appreciate against the U.S. dollar in 3 months' time when Yen payables need to be made, what can he/she do to hedge the currency risk?

a. Buy a put option on Yen

b. Sell a put option on Yen

c. Buy a call option on Yen

d. Sell a call option on Yen

e. Any of the above will do

Reference no: EM132717951

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