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Which of the following strategies could be used by a Mexican firm that must make a payment in US dollars to mitigate exchange rate risk?
Which of the following strategies could be used by a Mexican firm that must make a payment in US dollars to mitigate exchange rate risk?
A) Buy a futures contract on pesos.
B) Sell a futures contract on pesos.
C) Buy a futures contract on dollars.
D) Sell a forward contract on dollars.
E) None of the above.
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