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Previous Page Next Page Page 17 01 2 Question 20 (2 points) A U.S. company imports goods from a foreign supplier and agrees to make

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Previous Page Next Page Page 17 01 2 Question 20 (2 points) A U.S. company imports goods from a foreign supplier and agrees to make payment in 60 days in the foreign currency. Why might the U.S. company enter into a forward contract? (A) To offset the risk of the exposed liability increasing in the event that the US $ strengthens against the foreign currency. B) To offset the risk of the exposed liability increasing in the event that the US $ weakens against the foreign currency. To offset the risk of the exposed asset decreasing in the event that the US $ weakens against the foreign currency. (D) To offset the risk of the exposed asset decreasing in the event that the US $ strengthens against the foreign currency

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