Which of the following statements are correct?1) A firm that…
Which of the following statements are correct?1) A firm that will buy Swiss francs in the future wants the value of the franc to decrease before they have to buy francs. Therefore, the firm is long the Swiss franc since the firm will profit if the franc declines in value.2) Suppose a firm finds itself short the euro through past transactions. To hedge this risk, the firm could sell the currency forward.