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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
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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 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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