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FALSE ion for questions 14 through 19. Today, a U.S importer places an order for machine tools that will arrive in Houston in 60 days,
FALSE ion for questions 14 through 19. Today, a U.S importer places an order for machine tools that will arrive in Houston in 60 days, when Informat he must pay 1,000,000 euros to the German exporter. Assume that the price of at-the-money, 60-days, euro calls is $0.05, and the price of QUESTION 14 The U.S. importer is long euros TRUE FALSE QUESTION 15 Unhedged, he will suffer a loss if the dollar appreciates TRUE FALSE QUESTION 16 The U.S importer could hedge currency risk with a forward contract to purchase dollars with euros in 60 days TRUE FALSE QUESTION 17 The U.S importer could hedge by entering into a 60-day forward contract to purchase euros with dollars TRUE FALSE
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