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skelet666 [1.2K]
3 years ago
5

If Salerno Inc. desires to lock in a minimum rate at which it could sell its net receivables in Japanese yen but wants to be abl

e to capitalize if the yen appreciates substantially against the dollar by the time payment arrives, the most appropriate hedge would be:​ Group of answer choices purchasing yen call options. a money market hedge. a forward sale of yen. purchasing yen put options. selling yen put options.
Business
1 answer:
galben [10]3 years ago
5 0

Answer:

Purchasing yen put option

Explanation:

Hedging is a risk management practice where assets either liquid or any other form is protected from risks as a result of future loss from fluctuation in prices of commodities , securities or currencies.

One of the ways of hedging is purchasing a put option. This gives the owner the privilege to sell a listed assert at a given strike price through an tikk the option's expiration period.

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