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1 vote
A U.S. firm has borrowed £50 million from a British firm. The borrower will need to convert dollars to pounds to repay the loan when it is due. The U.S. firm could hedge the exchange rate risk by A.buying pounds forward.B. selling pounds forward.C. borrowing pounds.D. both B and C would hedge the risk E. both A and C would hedge the risk

1 Answer

5 votes

The answer is D. both B and C would hedge the risk

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User Onevarez
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