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If You Own a Foreign Currency Denominated Bond,you Can Hedge

Question 4

Multiple Choice

If you own a foreign currency denominated bond,you can hedge with


A) a long position in a currency forward contract.
B) a long position in an exchange-traded futures option.
C) buying the foreign currency today and investing it in the foreign county.
D) a swap contract where pay the cash flows of the bond in exchange for dollars.

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