Question

Mr. Sumant imported mobile handset parts for his mobile assembling unit in Tamil Nadu from an exporter in China. He has to pay USD 1,00,000 to the exporter after 3 months. Mr. Sumant is interested in hedging the foreign currency exchange rate risk through options. Which of the following he should do to hedge his position?

A Buy a call Option for USD
B Write a Call Option for USD
C Buy a Put Option for USD
D Write a Put Option on USD
E None of the above
Practice Next

Relevant for Exams:

Hey! Ask a query