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Assume a Japanese firm invoices exports to the U.S. in U.S. dollars. Assume that the forward rate and spot rate of the Japanese yen are
Assume a Japanese firm invoices exports to the U.S. in U.S. dollars. Assume that the forward rate and spot rate of the Japanese yen are equal. If the Japanese firm expects the U.S. dollar to_______ against the yen, it would likely wish to hedge. It could hedge by _______ dollars forward. A) depreciate; buying B) depreciate; selling C) appreciate; selling D) appreciate; buying
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