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As a treasurer of a large U.S. corporation, you must decide

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As a treasurer of a large U.S. corporation, you must decide how best to manage the firm's cash flows to maximize profits, subject to maintaining an acceptable level of risk. Imagine that you are at a firm which has an account payable to a French firm of ?2,000,000 due in 180 days. Review the options available for managing this foreign-currency liability. Is there any reason to prefer one course of action over another?

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The options could include:
1. Rely on spot market and buy euros any time in the next 180 days - riskiest since you will be completely vulnerable to swings in the ...

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