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A European firm wishing to hedge an exposure to the dollar in the form of cash *outflows (i.e., payables) denominated in dollars might A. Purchase

A European firm wishing to hedge an exposure to the dollar in the form of cash *outflows (i.e., payables) denominated in dollars might

A. Purchase a Euro put option

B. Purchase a Euro call option

What if it is the *inflows? Will the answer be different?

(Explain your answer please! Thank You!)

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