An Australian importer with FX payable in 3 months can hedge and lock in the price of the required foreign currency by:
A) buying AUD futures.
B) buying a currency swap.
C) selling AUD futures.
D) selling a currency swap.

Question

Quizplus · Accepted Answer

Selling AUD futures allows the Australian importer to lock in the exchange rate for the future purchase of foreign currency, effectively hedging against the risk of the Australian dollar depreciating.

An Australian Importer with FX Payable in 3 Months Can