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Which of the following is not an appropriate strategy for a multinational corporation to hedge a foreign currency receivable, where their goal is to limit
Which of the following is not an appropriate strategy for a multinational corporation to hedge a foreign currency receivable, where their goal is to limit the impact of unfavourable exchange rate changes on their domestic currency value? Select one: Taking a long position on call option with the foreign currency as the underlying asset Engaging in a money market hedge that involves an investment in the domestic currency as one of its steps Selling the foreign currency at a forward exchange rate in exchange for domestic currency Taking a long futures contract position on their domestic currency, with margin balances accounted for in the foreign currency. Taking a long position on put option with the foreign currency as the underlying asset
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