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If You Fear the Dollar Will Rise Against the French

Question 44

Multiple Choice

If you fear the dollar will rise against the French euro,with a resulting adverse change in the dollar value of the equity of your French subsidiary,you can hedge by


A) selling euros forward in the amount of net assets
B) buying euros forward in the amount of net assets
C) reducing the liabilities of the subsidiary
D) selling euros forward in the amount of total assets

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