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A technology company based in Japan is planning to expand its operations in the United States and is concerned about potential appreciation of the U.S.

A technology company based in Japan is planning to expand its operations in the United States and is concerned about potential appreciation of the U.S. dollar. Which hedging strategy would allow the company to protect against potential losses while still benefiting from favorable exchange rate movements?

1) Doing nothing 2)Purchasing a call/option on the U.S. dollar 3) Entering into a forward contract on the U.S dollar

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