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Question 23 General Electric (GE) just agreed to sell electrical equipment to a Brazilian firm and accept a payment of BRL 4,000,000 in 6 months.

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Question 23 General Electric (GE) just agreed to sell electrical equipment to a Brazilian firm and accept a payment of BRL 4,000,000 in 6 months. How will GE (a U.S. firm) hedge the receivables? By selling put options on the Brazilian currency By taking a long position on Brazilian real futures contracts By entering in a forward contract to sell U.S. dollars and buy the Brazilian currency By entering in a forward contract to buy U.S. dollars and sell the Brazilian currency By selling call options on the Brazilian currency

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