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Nissan,the Japanese Car Manufacturer,exports a Substantial Fraction of Its Output

Question 33

Multiple Choice

Nissan,the Japanese car manufacturer,exports a substantial fraction of its output to the United States.What financial measures would be suitable for Nissan to take to reduce its currency risk?


A) borrow only yen to finance its operations
B) borrow dollars to finance part of its operations
C) sell yen forward in the amount of its annual shipments to the U.S.
D) buy yen forward in the amount of its annual shipments to the U.S.

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