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A U.S. exporter has a 100,000 receivable due in one year. What is the strategy using forward or option contracts to hedge the exchange rate
A U.S. exporter has a 100,000 receivable due in one year. What is the strategy using forward or option contracts to hedge the exchange rate risk (two of the following are correct)? Buy forward 100,000 at a one-year dollar-euro forward rate. Buy a one-year put option on 100,000 with an exercise price in dollars. Buy a one-year call option on 100,000 with an exercise price in dollars. Sell forward 100,000 at a one-year dollar-euro forward rate
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