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3 . An importer in Canada is due to take delivery of silk scarves from Europe in 6 months. The price is fixed in Euros.
An importer in Canada is due to take delivery of silk scarves from Europe in months. The price is fixed in Euros. Which of the following transactions could eliminate the importers exchange risks? a Buy Euro forward b Sell Euro forward c Borrow Euro, buy dollars at a spot exchange rate d Sell Euros at the spot exchange rate, lend dollars.
An importer in Canada is due to take delivery of silk scarves from Europe in months. The price is fixed in Euros. Which of the following transactions could eliminate the importers exchange risks?
a Buy Euro forward
b Sell Euro forward
c Borrow Euro, buy dollars at a spot exchange rate
d Sell Euros at the spot exchange rate, lend dollars.
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