Question: Hedging with Forward Contracts. Explain how a U.S. corporation could hedge net receivables in Malaysian ringgit with a forward contract. Explain how a U.S. corporation

Hedging with Forward Contracts. Explain how a U.S. corporation could hedge net receivables in Malaysian ringgit with a forward contract. Explain how a U.S. corporation could hedge payables in Canadian dollars with a forward contract.

A) The U.S. corporation could buy ringgit forward using a forward contract. The U.S. corporation could buy Canadian dollars forward using a forward contract.

B) The U.S. corporation could buy ringgit forward using a forward contract. The U.S. corporation could sell Canadian dollars forward using a forward contract.

C) The U.S. corporation could sell ringgit forward using a forward contract. The U.S. corporation could sell Canadian dollars forward using a forward contract.

D) The U.S. corporation could sell ringgit forward using a forward contract. The U.S. corporation could buy Canadian dollars forward using a forward contract.

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