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Assume a U.S. firm receives invoices from its Swedish supplier in U.S. dollars. Assume that the forward rate and spot rate of the Swedish krona
Assume a U.S. firm receives invoices from its Swedish supplier in U.S. dollars. Assume that the forward rate and spot rate of the Swedish krona are equal. If the Swedish firm expects the U.S. dollar to ____ against the krona, it would likely wish to hedge. It could hedge by ____ dollars forward.
Question 10 options:
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| appreciate; selling |
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| depreciate; buying |
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| appreciate; buying |
|
| depreciate; selling |
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