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Which is not a hedging strategy for wbs corporation

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Problem 1: As a UK based company, WBS corporation just signed a contract to sell products to a US company. According to the contract, WBS corporation would receive $5 million payment in 3 months. Which of the following is NOT a hedging strategy for WBS corporation?

a) Long position in 3-month European put option on $5 million USD
b) Long position in 3-month American put option on $5 million USD
c) Short position in 3-month future contracts on USD with $5 million notional principal
d) Long position in 3-month forward contract on USD with $5 million notional principal

Reference no: EM132746395

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