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Which of the Following Reflects a Hedge of Net Payables

Question 17

Multiple Choice

Which of the following reflects a hedge of net payables on British pounds by a U.S. firm?


A) purchase a currency put option in British pounds.
B) sell pounds forward.
C) sell a currency call option in British pounds.
D) borrow U.S. dollars, convert them to pounds, and invest them in a British pound deposit.
E) A and B

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