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To hedge receivable in a foreign currency, a firm may sell a currency futures contract for...

To hedge receivable in a foreign currency, a firm may sell a currency futures contract for that currency.

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Answer #1

TRUE.

To hedge receivable in a foreign currency, a firm may sell a currency futures contract for that currency.

Receivables in Foreign currency can be hedged by taking the sell that foreign currency futures contracts, so that the foreign currency can be converted by selling the Receivables amount into Domestic Currency at a fixed rate i.e. Hedged receivables.

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