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A Canadian company has to pay its suppliers some amount in a foreign currency on a future date. The company decides to hedge with foireign

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A Canadian company has to pay its suppliers some amount in a foreign currency on a future date. The company decides to hedge with foireign currency futures. Which of the following best describes the results of hedging? It caps the exchange rate that will be paid It leads to a better exchange rate being paid It leads to a more predictable exchange rate being paid It provides a floor (minimum value) for the exchange rate that will be paid

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