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Jill Pope, CFA, is a portfolio manager in the United States that will begin managing a portfolio denominated only in Euros. Her supervisor asks her to hedge the portfolio against currency fluctuations using an instrument that will effectively be an insurance policy against downside risk while offering upside potential. To do this, Pope: A. should take a long position in $/€ forward contracts. B. should sell put options on the $/€ exchange rate. C. should buy put options on the $/€ exchange rate. |