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A Japanese corporation exports goods to Australia and expects to receive payment in Australian dollars in three months. To mitigate the risk of a weakening

A Japanese corporation exports goods to Australia and expects to receive payment in Australian dollars in three months. To mitigate the risk of a weakening Australian dollar, the corporation can use a forward contract. What is the primary purpose of using a forward contract in this scenario?

a) Maximizing profit from favorable market trends

b) Minimizing credit risk

c) Hedging against exchange rate fluctuations

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