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Silicon Co., based in the U.S., exports products to Japan denominated in yen. If the forecasted value of the yen is substantially ____ than the

Silicon Co., based in the U.S., exports products to Japan denominated in yen. If the forecasted value of the yen is substantially ____ than the forward rate, Silicon Co. will likely decide ____ the payments.

higher; to hedge

lower; not to hedge

higher; not to hedge

lower; to hedge

lower; to hedge OR higher; not to hedge

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