Q. Kalons ltd. is a UK-based MNC that frequently imports raw materials from Canada. Kalons is typically invoiced for these goods in Canadian dollars and is concerned that the Canadian dollar will appreciate in the near future. Which of the following is not an appropriate hedging technique under these circumstances? (Solved)
1. purchase Canadian dollars forward.
2. purchase Canadian dollar futures contracts.
3. purchase Canadian dollar put options.
4. purchase Canadian dollar call options.
- c. purchase Canadian dollar put options.