If the foreign currency is expected to appreciate to a value higher than the appropriate forward rate:
A) a hedger will hedge foreign payables by buying a put option
B) a hedger will hedge foreign payables by selling the foreign currency forward
C) a hedger will not hedge foreign payables
D) a hedger will regret his decision to hedge foreign payables if the foreign currency is lower than the forward rate at maturity
Correct Answer:
Verified
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