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5. An MNC frequently uses either forward or futures contracts to hedge its exposure to foreign receivables. To do so, the MNC can either sell
5. An MNC frequently uses either forward or futures contracts to hedge its exposure to foreign receivables. To do so, the MNC can either sell the foreign currency forward or sell futures. If another MNC wants to hedge its foreign currency denominated payables, it could sell either a call or a put option on the foreign currency. The first MNC is hedging action, while the second is in its a. Correct; wrong b. Correct; correct c. Wrong; correct d. Wrong; wrong
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