To protect itself against transaction exchange rate risk, a U.S. company that purchases automobiles from a Japanese manufacturer may use all of the following techniques EXCEPT ____.
A) borrow U.S. funds and invest them in interest-bearing Japanese securities
B) execute a contract in the forward exchange market
C) sell yen in the spot market at the time of each transaction
D) execute a contract in the foreign exchange futures market
Correct Answer:
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