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A French company needs to pay its Australian supplier 2 million Australian dollars in six months and has concern about future EUR/AUD exchange rate movements.

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A French company needs to pay its Australian supplier 2 million Australian dollars in six months and has concern about future EUR/AUD exchange rate movements. Which of the following statements is/are correct? i. The French company can enter into a six-month forward contract with its bank to sell Australian dollars. ii. The French company can enter into a six-month forward contract with its bank to buy Australian dollars. ii. The French company needs to pay its bank a forward premium in order to enter into a six-month forward contract. iv. Using a forward contract reduces/eliminates the uncertainty related to future EUR/AUD exchange rate movements and is always profitable to the French company ex post. v. Using a forward contract reduces/eliminates the uncertainty related to future EUR/AUD exchange rate movements but may make a loss to the French company ex post. land I I and v ili and iv Oli and land

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