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12) A Chinese company wants to bid on a hotel located in Australia in three months. If the Chinese company gets the contract, it will

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12) A Chinese company wants to bid on a hotel located in Australia in three months. If the Chinese company gets the contract, it will earn AUD as its revenue. Suppose that the company wants to use currency derivatives to hedge a currency risk in converting AUD to CNY. Which of the following strategies is MOST suitable for the Chinese company to hedge the risks? A. Buy a call option on AUD (against CNY) B. Buy a put option on AUD (against CNY) C. Sell a put option on AUD (against CNY) D. Sell a forward contract on AUD (against CNY) E. B and D

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