问题：Sally Sitter Co has to pay a French supplier 100,000 euros in 3 months time. The company's financial director wishes to avoid exchange rate exposure, and is looking at four options.
 
　　Options
 
　　1 Do nothing for three months, then buy the euros at the spot rate.
 
　　2 'Lead' with the payment, and pay in full now, buying the euros at today's spot rate.
 
　　3 Buy euros now, put them on deposit for three months, and pay the debt with these euros plus accumulated interest.
 
　　4 Arrange a forward exchange contract to buy the euros in three months time.
 
　　Which of these options would provide cover against exchange rate exposure?
 
　　A. Options 1, 2, 3 and 4.
 
　　B. Options 4 only.
 
　　C. Options 2, 3 and 4.
 
　　D. Options 3 and 4.
 
　　答案：The correct answer is: Options 2, 3 and 4.
 
　　解析：Leading with the payment eliminates the foreign currency exposure by removing the liability. Borrowing short term in euros to meet the payment obligation in 3 months' time matches assets and liabilities in euros and so provides cover against the exposure. A forward exchange contract is a well-used method of hedging against transaction exposure.

 
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