"A U.S. company that sells stereo equipment places an order for Japanese stereo components for its inventory. Payment must be made in Japanese yen in three months. The U.S. company thinks that the U.S. dollar may weaken against the yen. Which of the following foreign currency option transactions would best protect the U.S. company from a weakening of the U.S. dollar against the yen?
A)Sell puts on Japanese yen
B)Buy puts on Japanese yen
C)Sell calls on Japanese yen
D)Buy calls on Japanese yen"