Question

typically invoices these goods in euros and is concerned that the euro will depreciate in the near future. Which of the following is not an appropriate technique under these circumstances? sell euro futures contracts. sell euro put options. sell euros forward. purchase euro put options.

Answer 1

Answer: Sell Euro put options

Step-by-step explanation:

If you expect the euro to depreciate, it would be appropriate to sell for speculative purposes. A put option is an option to sell assets (Euro) at a particular price and on a particular date. The purchase of a put option is usually explained as a negative sentiment about the future value of the underlying asset that is to be sold. And since it is projected that Euro will depreciate, this is the right thing to do.