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Find what the bank should

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Problem 1: An Australian bank must pay US$10 million in 90 days. It wishes to hedge the risk in the futures market. To do so, the bank should:

Select one:

a. Sell AUD 10 million in US dollar futures
b. Buy USD 10 million in US dollar futures
c. Sell USD 10 million in AU dollar futures
d. Buy AUD 10 million in US dollar futures
e. Buy USD 10 million in AU dollar futures

Reference no: EM132767324

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