How can a currency futures contract be used as a hedge against a potentially dramatic appreciation of a foreign currency that an Australian company is expecting to convert into Australian dollars?
A) The Australian company should sell the foreign currency using futures contracts.
B) The Australian company should buy more foreign currency futures contracts than it should sell.
C) The Australian company should buy the foreign currency using futures contracts.
D) This is a standard business situation that would be favorable if it were to happen,so no hedge is needed.
Correct Answer:
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