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A U.S. firm has borrowed f50 milion from a British firm. The borrower will need to convert dollars to pounds to repay the loan when
A U.S. firm has borrowed f50 milion from a British firm. The borrower will need to convert dollars to pounds to repay the loan when it is due. The U.S. firm could hedge the exchange rate risk by A) buying pounds forward. B) selling pounds forward. C) borrowing pounds. D) both selling pounds forward and borrowing pounds. E) both buying pounds forward and borrowing pounds.
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