| Description |
Lisa Smith owns a manufacturing company in the United States. Her company
has sold goods to a customer in Brazil and will be paid in Brazilian real (BRL) in
three months. Smith is concerned about the possibility of the BRL depreciating
more than expected against the US dollar (USD). Therefore, she is planning to sell
three-month futures contracts on the BRL. The seller of such contracts gener-
ally gains when the BRL depreciates against the USD. If Smith were to sell these
future contracts , she would most appropriately be described as a(n): |