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Jim Logan will receive 100,000 from its UK distributor in 6 months. He is expecting the USD to strengthen in 6 months. Which hedging strategy
Jim Logan will receive 100,000 from its UK distributor in 6 months. He is expecting the USD to strengthen in 6 months. Which hedging strategy should be applied? Select all that apply.*
a. Obtain a forward/futures contract to purchase foreign currency
b. Obtain a forward/futures contract to sell foreign currency
c. Borrowed funds in the home currency and a short-term investment in the foreign currency.
d. Borrowed funds in the foreign currency and a short-term investment in the domestic currency.
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