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Suppose that an MNC wishes to purchase a foreign exchange derivative contract to hedge against future payments but also desires the flexibility to not use the contract if it so chooses.
Which of the following contracts will the MNC most likely choose?
A. Currency Futures Contracts
B. Forward Contracts
C. Currency Options Contracts
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Answers: 3
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Suppose that an MNC wishes to purchase a foreign exchange derivative contract to hedge against futur...
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