Macomb Corporation is a U.S. firm that invoices some of its exports in Japanese yen. If it expects the yen to weaken, it could ____ to hedge the exchange rate risk on those exports.
A) sell yen put options
B) buy yen call options
C) buy futures contracts on yen
D) sell futures contracts on yen

Question

Quizplus · Accepted Answer

Selling futures contracts on yen would allow Macomb Corporation to lock in a future exchange rate, protecting against the risk of the yen weakening.

Macomb Corporation Is a U