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Suppose an American-based firm is due to be paid in euros in two months. To hedge against exchange rate risk, the American firm should: Question

Suppose an American-based firm is due to be paid in euros in two months. To hedge against exchange rate risk, the American firm should:

Question options: option 3 is wrong

1)

Sell euro futures.

2)

Buy euro futures.

3)

Buy forward contract in euros.

4)

Do none of the above.

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