Which of the following represents an appropriate hedge for an Australian exporter expecting payment of US$100 000 in three months' time?
A) Lend the Australian dollar equivalent for three months.
B) Borrow the Australian dollar equivalent for three months.
C) Lend US$100 000 for three months.
D) Borrow the present value of US$100 000 for three months and buy Australian dollars spot.
Correct Answer:
Verified
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