To hedge a foreign currency payable,
a. Buy call options on the foreign currency
b. Sell put options on the foreign currency
c. Sell call options on the foreign currency
d. Sell put options on the foreign currency
2. The most popular currency financial derivatives is
a. Options
b. Forwards
c. Futures
d. Swaps
3. Explain the conditions that would cause a business to be adversely affected by exchange rate movements.
4. Explain how a business could be adversely affected by political risk.