Question: A U . S . bursed multinational corporation expects to receive 4 0 million from a European client in four months. To hedge against the

A U

.

.

bursed multinational corporation expects to receive

40

million from a European client in four months. To hedge against the risk of the euro depreciating against the dollar before the payment is received, which of the following strategies is most appropriate?

There a long position in a eupp futures contract.

Borrow euros now and convert them to dollin at today's spot rate.

A U . S . bursed multinational corporation

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