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Your firm owes $150 million euros, which will be due in one year. If a foreign exchange futures contract is for 125,000 euros at a
Your firm owes $150 million euros, which will be due in one year. If a foreign exchange futures contract is for 125,000 euros at a price of $1 per euro, what can you do to hedge against your foreign exchange rate risk?
A: Sell 1,200 euro futures contracts
B: Buy 1,200 euro futures contracts
C: Sell 600 euro futures contracts
D: Buy 600 euro futures contracts
E: none of the above
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