Question
A U.S. company has subsidiaries whose functional currency is their local currency. Assume the subsidiaries have a positive net asset position. Which investment hedges the
A U.S. company has subsidiaries whose functional currency is their local currency. Assume the subsidiaries have a positive net asset position. Which investment hedges the U.S. company's currency risk from these subsidiaries?
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| A. | Investments in debt securities in the subsidiaries' currency |
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| B. | Forward purchase in the subsidiaries' currency |
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| C. | Investments in equity securities in the subsidiaries' currency |
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| D. | Debt denominated in the subsidiaries' currency |
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Financial accounting
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
9th edition
978-0132751216, 132751127, 132751216, 978-0132751124
