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How can the us company hedge the foreign currency receivable

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Reference no: EM132538880

Question 1: A US company has an AUD 1 million receivable in two months. How can the US company hedge the foreign currency receivable? It could:

Select one:

a. sell AUD in the forward market.

b. sell USD in the spot market.

c. buy AUD in the spot market.

d. buy USD in the forward market.

Question 2: When a company receives a USD 10 million payment for export goods on the same day as it pays USD 10 million for imports, this is called a/an:

Select one:

a. passive hedge.

b. natural hedge.

c. dynamic hedge.

d. inherent hedge.

Reference no: EM132538880

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