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For each of the following situations, determine whether a long or short hedge is appropriate. Justify your answers. a. A firm anticipates issuing stock in
For each of the following situations, determine whether a long or short hedge is appropriate. Justify your answers.
a. A firm anticipates issuing stock in three months.
b. An investor plans to buy a bond in 30 days.
c. A firm plans to sell some foreign currency denominated assets and convert the proceeds to domestic currency.
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