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Represents a correct strategy for money market hedging

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Reference no: EM132465653

Suppose you are an American company and have an account payable in one million euro due in six month. Which of the following represents a correct strategy for money market hedging?

  1. Borrow euro, buy dollar spot, and lend dollar for six months.
  2. Borrow U.S. dollars, buy euro spot, and lend euro for six month.

Reference no: EM132465653

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