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QUESTION 15 If an Australian firm is receiving 100,000 pounds in 90 days and wishes to avoid the risk from exchange rate fluctuations, it could:

QUESTION 15

If an Australian firm is receiving 100,000 pounds in 90 days and wishes to avoid the risk from exchange rate fluctuations, it could:

a. purchase a 60-day forward contract on pounds.

b. sell a 60-day forward contract on pounds.

c. purchase pounds 60 days from now at the spot rate.

d. none of the above.

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