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Suppose IRP and IFE hold between the United States and the Eurozone. If I will owe Euro in the near future, the best action would
Suppose IRP and IFE hold between the United States and the Eurozone. If I will owe Euro in the near future, the best action would be to:
Group of answer choices:
Purchase futures contracts on Euro
Purchase forward contracts on Euro
Do nothing: simply purchase Euro at the spot rate when needed
If IRP and IFE hold any of the choices given will produce the same result.
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