A US firm is purchasing inventory from a company in Germany. Payment is due in euros in one year. The US firm wishes to fix the dollar value of the cash outflow and eliminate exchange rate risk. In this case, the firm should
a. borrow $, exchange them for euros, and invest the euros in Germany.
b. establish a long forward contract on the euro.
c. Either of the above strategies will meet the firm's goals.
d. Neither of the above strategies will meet the firm's goals.