Multiple Choice
An Australian bank must pay US$10 million in 90 days.It wishes to hedge the risk in the futures market.To do so, the bank should:
A) buy A$10 million in US dollar futures
B) sell A$10 million in US dollar futures, with three-month maturity
C) buy US$10 million in US dollar futures
D) sell US$10 million in US dollar futures
Correct Answer:
Verified
Correct Answer:
Verified
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