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Question
A U.S. bank is owed $10 million in interest from the Mexican government organization in 90 days. What is the more likely action taken by a currency risk manager?a. The Mexican manager will sell U.S. dollars in a 90-day forward contract.
b. The U.S. bank will buy peso in a 90-day forward contract.
c. The Mexican manager will buy U.S. dollars in a 90-day forward contract.
d. The Mexican manager will buy a peso 90-day forward contract.
Answer
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