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ABC, Inc. is a U.S.-based MNC that frequently imports raw materials from Canada. ABC, Inc. is typically invoiced for these goods in Canadian dollars and
ABC, Inc. is a U.S.-based MNC that frequently imports raw materials from Canada. ABC, Inc. is typically invoiced for these goods in Canadian dollars and is concerned that the Canadian dollar will appreciate in the near future. Which of the following is an appropriate hedging technique under these circumstances?
a. purchase Canadian dollars forward.
b. sell Canadian dollar futures contracts.
c. purchase Canadian dollar put options.
d. write Canadian dollar call options.
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