Which one of these is a suggested means of reducing short-run exposure to exchange rate risk?
A) Compiling financial statements only in foreign currency terms
B) Utilizing foreign borrowing to fund foreign operations
C) Borrowing domestic currency,exchanging it for foreign currency,and investing it in foreign investments
D) Ensuring any foreign operation requires significant parent company involvement
E) Using a current spot contract to exchange the amount of funds needed
Correct Answer:
Verified
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