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A U . S . firm has a 1 0 0 , 0 0 0 payable with a 3 - month maturity. Which of the
A US firm has a payable with a month maturity. Which of the following will hedge the foreign exchange exposure?
a
Buy a call option on with a strike price in dollars.
b
All of the above
c
Take a long position in a forward contract on with a month maturity.
d
Buy the present value of today at the spot exchange rate, invest in the UK at i
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