Why would a US-dollar based company hedge a foreign currency payable, due in three months? It fears that the foreign currency will strengthen vs, the U.S, dollar It fears that there will be no change to the exchange rate to the U.S. dollar It fears that the foreign currency will weaken vs. the U.S. dollar It is reckless and likes to engage in currency speculation You will receive money from a Japanese company in six months. To hedge the exposure, you would Do nothing because the company that owes you the money is safe and reliable Always borrow in USD, convert to yen and deposit the money in a Japanese yen bank account Always borrow where the interest rate is lower, convert, and deposit the moncy where the interest rate is higher Always borrow in yen, convert to USD, and deposit the money in a USD bank account