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If a firm has decided to invest in an option to protect against currency depreciation from another country (for example, Caterpillar has recently agreed to

  1. If a firm has decided to invest in an option to protect against currency depreciation from another country (for example, Caterpillar has recently agreed to sell tractors 6 months from now and will be paid in Yen), the firm should:

    buy a call option

    buy a put option

    buy a straddle

    sell a put option

    sell a call option

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