A risk averse American business that knows now that it will have to pay a large bill in Mexican pesos next month would do which of the following?

Buy pesos in the spot market.
Buy pesos in the forward market.
Sell pesos in the spot market.
Sell pesos in the forward market.

Question

A risk averse American business that knows now that it will have to pay a large bill in Mexican pesos next month would do which of the following?
 	
	Buy pesos in the spot market.
	Buy pesos in the forward market.
	Sell pesos in the spot market.
	Sell pesos in the forward market.

anonymous · Answer

To avoid the risk for huge price increase in pesos , Businesses wants to buy money at agreed price at future date.

So
Buy pesos in forward market

anonymous · Answer

Buy pesos forward.

International trade in here?

anonymous · Answer

Level up

anonymous · Answer

Smokin...:-)