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A European firm imports goods from the U.S. and will need to pay USD in the future. The forward premium on the Euro is currently
A European firm imports goods from the U.S. and will need to pay USD in the future. The forward premium on the Euro is currently at 0%. The European firm forecasts the USD to against the EUR, and as a result wishes to enter a hedge. It could do so by USD forward. appreciate; selling depreciate; selling depreciate; buying appreciate; buying
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