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A U. S.-based MNC that frequently imports raw materials from Canada. It is typically invoiced for these goods in Canadian dollars and is concerned that the Canadian dollar will appreciate in the near future.
1. Which of the following is an appropriate hedging technique under these circumstances?
A. sell Canadian dollars forward.
B. purchase Canadian dollar futures contracts.
C. buy Canadian dollar put options.
D. sell Canadian dollar call options.
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A U. S.-based MNC that frequently imports raw materials from Canada. It is typically invoiced for th...
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