A euro-based firm has received a large amount of cash inflows periodically in Swiss francs as a result of exporting goods to Switzerland. It has no other business outside the euro area. It could best reduce its exposure to exchange rate risk by:
A) issuing Swiss franc-denominated bonds.
B) purchasing Swiss franc-denominated bonds.
C) purchasing euro-denominated bonds.
D) issuing euro-denominated bonds.
Correct Answer:
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