Au. s. firm is bidding for a project needed by the swiss government. the firm will not know if the bid is accepted until three months from now. the firm will need swiss francs to cover expenses but will be paid by the swiss government in dollars if it is hired for the project. the firm can best insulate itself against exchange rate exposure by: a. selling futures in francs. b. buying futures in francs. c. buying franc put options. d. buying franc call options

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

the answer is a. $209,000