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To use a derivative to hedge a temporary working capital flow, the financial manager should: A.Purchase the derivative. B.Sell the derivative. C.Create an exposure equal

To use a derivative to hedge a temporary working capital flow, the financial manager should:

A.Purchase the derivative.

B.Sell the derivative.

C.Create an exposure equal and opposite to the risk to be hedged.

D.Both purchase and sell the derivative to create a risk-free position.

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