Question: Consider Samuel , a U . S . based MNC that must pay 3 million Thai baht to a supplier in Thailand. The payment is

Consider Samuel , a U.S. based MNC that must pay 3 million Thai baht to a supplier in Thailand. The payment is due in 3 months, but Samuel believes the baht will appreciate over those 3 months. Moreover, forward contracts and other hedging strategies are not available to the MNC However, since hypothetically) the Hungarian forint is highly correlated with the Thai baht, the MNC purchases forint forward and plans to use those forint to exchange for baht when the payable is due. This strategy is known as ___________

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