Which of the following would be an effective hedging, Financial Management

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Which of the following would be an effective hedging

Dell is selling 30,000 units in Europe at an average price of €1,500 per unit. Both the spot and forward exchange rates are $1.20/€. The cost of each unit in dollars is $1,300 per unit. The elasticity of demand for Dell computers in Europe is ε = 1.5.

Which of the following would be an effective hedging assuming zero passthrough?

buy $45 million forward

sell €45 million forward

buy $20 million forward

sell €20 million forward

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Financial Management: Which of the following would be an effective hedging

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Financial Management: Which of the following would be an effective hedging

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