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Q3) If you have a long position in a foreign currency, you can hedge with A) a short position in a currency forward contract. B) borrowing in the domestic and foreign money markets. C) a short position in an exchange-traded futures option. D) a short position in foreign currency warrants Q4) If you owe a foreign currency denominated debt, you can hedge with A) a long position in a currency forward contract, or buying the foreign currency today and investing it in the foreign country B) a long position in a currency forward contract. C) buying the foreign currency today and investing t in the foreign country D) a long position in an exchange-traded futures option.
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Answer #1

Question 3:

option A. A short position in a currency forward contract

Question 4:  

Option A. a long position in a currency forward contract or buying the foreign currency today and investing it in the foreign country

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