If You Own a Foreign Currency Denominated Bond,you Can Hedge

question 35

Multiple Choice

If you own a foreign currency denominated bond,you can hedge with

• A)a long position in a currency forward contract.
• B)a long position in an exchange-traded futures option.
• C)buying the foreign currency today and investing it in the foreign county.
• D)a swap contract where pay the cash flows of the bond in exchange for dollars.

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