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Your u.s. firm has a 150,000 payable with a 3-month maturity. Which of the following will hedge your liability?
a. Sell a put option on 150,000 with a strike price in dollars
b. Buy the present value of 150,00 today at the spot exchange rate and invest in the U.K. and i.
c. Take a short position in a forward contract on 150,000 with a 3-month maturity
d. Buy a put option on 150,000 with a strike price in dollars.
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