If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it will need C$200,000 in 90 days to make payment on imports from Canada, it could:

A)obtain a 90?day forward purchase contract on Canadian dollars.

B)obtain a 90?day forward sale contract on Canadian dollars.

C)purchase Canadian dollars 90 days from now at the spot rate.

D)sell Canadian dollars 90 days from now at the spot rate.

Assume that Swiss investors have francs available to invest in securities, and they initially view U.S. and British interest rates as equally attractive. Now assume that U.S. interest rates increase while British interest rates stay the same. This would likely cause:

A)the Swiss demand for dollars to decrease and the dollar will depreciate against the pound.

B)the Swiss demand for dollars to increase and the dollar will depreciate against the Swiss franc.

C)the Swiss demand for dollars to increase and the dollar will appreciate against the Swiss franc.

D)the Swiss demand for dollars to decrease and the dollar will appreciate against the pound.

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