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A British firm has borrowed $50 million from an American firm. The borrower will need to convert pounds to dollars to repay the loan when
A British firm has borrowed $50 million from an American firm. The borrower will need to convert pounds to dollars to repay the loan when it is due. The British firm could hedge the exchange rate risk by
A. selling pounds forward.
B. borrowing pounds.
C. buying dollars forward.
D. both selling pounds forward and borrowing pounds.
E. both buying pounds forward and borrowing pounds.
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