Question
Question 9b (1 mark) An Australian company has issued a $5 million USD one year zero coupon bond in the US. How might the company
Question 9b (1 mark)
An Australian company has issued a $5 million USD one year zero coupon bond in the US. How might the company hedge this currency exposure?
Select one:
a.
Sell AUD one-year T-bond futures
b.
Sell $5million USD one-year forward
c.
Buy $5million USD one-year forward
d.
Buy $5million AUD one-year forward
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
