If your firm expects the euro to substantially depreciate, it could speculate by _______ euro call options or _______ euros forward in the forward exchange market.
A. selling; selling
B. selling; purchasing
C. purchasing; purchasing
D. purchasing; selling
Answer:A
If your firm expects the euro to substantially depreciate, it could speculate by _______ euro call options or _______ euros forward in the forward exchange market.
A. selling; selling B. selling; purchasing C. purchasing; purchasing D. purchasing; selling