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Suppose a U.S. company would like to manage exchange exposure associated with an account receivable denominated in euro. The company still wants to benefit from
Suppose a U.S. company would like to manage exchange exposure associated with an account receivable denominated in euro. The company still wants to benefit from a rising euro but would like to ensure a minimum dollar amount no matter what happens to the exchange rate. The company can hedge with
A. | a long position in a currency forward contract. | |
B. | a short position in a currency forward contract. | |
C. | a long position in a currency put option. | |
D. | a short position in a currency call option. |
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