Assume you are an American exporter and expect to receive 50 pounds sterling at the end of 60 days. You can remove the risk of loss due to a devaluation of the pound sterling by

a. selling sterling in the forward market for 60-day delivery.
b. buying sterling now and selling it at the end of 60 days.
c. selling the dollar equivalent in the forward market for 60-day delivery.
d. keeping the sterling in Britain after it is delivered to you.


a. selling sterling in the forward market for 60-day delivery.

Business

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