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A U . S . company exports goods to a foreign customer and agrees to receive payment in 6 0 days in the foreign currency.
A US company exports goods to a foreign customer and agrees to receive payment in days in the foreign currency. Why might the US company enter into a forward contract?
A To offset the risk of the exposed liability increasing in the event that the US weakens against the foreign currency.
B To offset the risk of the exposed asset decreasing in the event that the US $ strengthens against the foreign currency.
C To offset the risk of the exposed asset decreasing in the event that the US $ weakens against the foreign currency.
D To offset the risk of the exposed liability increasing in the event that the US $ strengthens against the foreign currency.
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