Question
An Australian firm has to make a large payment denominated in Israeli Shekel in two years. To hedge this exposure, it can (1) (a) Issue
(a) Issue bonds that pay interest in the Israeli Shekel
(b) Go short with forward contracts for a currency that is highly correlated to the Shekel relative to the dollar
(c) Buy call options for a currency that is highly correlated with the Shekel relative to the dollar
(d) All of the above
(e) None of the
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Income Tax Fundamentals 2013
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