Question
Hedging with Forward Contracts. Explain how a U.S. corporation could hedge net receivables in Malaysian ringgit with a forward contract. Explain how a U.S. corporation
Hedging with Forward Contracts. Explain how a U.S. corporation could hedge net receivables in Malaysian ringgit with a forward contract. Explain how a U.S. corporation could hedge payables in Canadian dollars with a forward contract.
A) The U.S. corporation could buy ringgit forward using a forward contract. The U.S. corporation could buy Canadian dollars forward using a forward contract.
B) The U.S. corporation could buy ringgit forward using a forward contract. The U.S. corporation could sell Canadian dollars forward using a forward contract.
C) The U.S. corporation could sell ringgit forward using a forward contract. The U.S. corporation could sell Canadian dollars forward using a forward contract.
D) The U.S. corporation could sell ringgit forward using a forward contract. The U.S. corporation could buy Canadian dollars forward using a forward contract.
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