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To Hedge Against a Rise in the Price of Foreign

Question 102

Multiple Choice

To hedge against a rise in the price of foreign currency an importer can either _____ or _____ on the foreign currency.


A) Use covered currency arbitrage, sell a futures contracts
B) Sell a put option on a futures contract, sell a futures contract
C) Buy a call option on a futures contract, sell a futures contract
D) Buy a put option on futures contract, sell a futures contract
E) Buy a call option on futures contract, buy a futures contract

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