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A U.S. company will choose to hedge a foreign currency-based receivable due in three months because: A)It fears that there will be no change to
A U.S. company will choose to hedge a foreign currency-based receivable due in three months because:
A)It fears that there will be no change to the exchange rate to the US dollar.
B)It fears that the foreign currency will weaken vs the US dollar.
C) None of the above because companies should not hedge because it represents currency speculation.
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