InvestorsHub Logo
Followers 22
Posts 899
Boards Moderated 0
Alias Born 07/24/2002

Re: money4nothin post# 19176

Sunday, 11/21/2004 2:36:22 PM

Sunday, November 21, 2004 2:36:22 PM

Post# of 82595
money4nothin...Don't know whether they will, but generally they could hedge against a devaluation of the dollar versus the euro by buying Foreign Currency option calls on the euro. That would effectively lock in the purchase price for the euro's they'll need down the line.

They have to pay a premium for the option, though, so if the expected relative rise in the value of the euro fails to materialize, they could lose up to the full value of the premium they paid for the option.

Later,
W2P