Waneka Corp., a U.S. company, is concerned that fluctuations in a foreign currency could severely affect the profitability of a major sale to a foreign customer. Which type of exchange rate would be the most important rate used if Waneka were to enter into a hedging transaction to minimize the risk of currency fluctuation?

Waneka Corp., a U.S. company, is concerned that fluctuations in a foreign currency could severely affect the profitability of a major sale to a foreign customer. Which type of exchange rate would be the most important rate used if Waneka were to enter into a hedging transaction to minimize the risk of currency fluctuation?

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