Since the U.S. company is a buyer, should not it focus on either a Forward contract or a "Call Option"? This case is about "Foreign Currency Liability," which is "Payable." Put Option is used when the company exercises selling options, but the case about includes that the company "regularly purchases." Can you please explain thoroughly? unless i have messed anything to grasp.

Since the U.S. company is a buyer, should not it focus on either a Forward contract or a "Call Option"? This case is about "Foreign Currency Liability," which is "Payable." Put Option is used when the company exercises selling options, but the case about includes that the company "regularly purchases." Can you please explain thoroughly? unless i have messed anything to grasp.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates

Section: Chapter Questions

Problem 15QA

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