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Your company is expecting a major export order from a

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Your company is expecting a major export order from a London-based client. The receivables under the contract are to be billed in GBP, while your reporting currency is USD. Since the order is a large sum, your company does not want to bear the exchange risk and wishes to hedge it using derivatives.

To minimize the cost of hedging, which of the following is the most suitable contract?

A. A chooser option for GBP/USD pair

B. A currency swap where you pay fixed in USD and receive floating in GBP

C. A barrier put option to sell GBP against USD

D. An Asian call option on GBP against USD

Reference no: EM13569052

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