A large Australian firm wants to fund a U.S asset (purchased in US dollars) by issuing debt in the U.S bond markets but is concerned about the currency risk associated with a changing USD-AUD exchange rate. Which of the following statements is correct? O After funding the acquisition using debt denominated in US dollars, the firm should use derivatives to hedge the total exposure faced by the company. More than one of the other statements is correct. Funding the acquisition using debt denominated in US dollars is an example of a natural hedge. An advantage with funding the acquisition using debt denominated in Australian dollars is that this will allow it to avoid the consequences of cash outflows (associated with servicing the debt) rising and falling with changes in the exchange rate. O None of the other statements is correct