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CFA Level 3
Derivatives & Currency Mgmt

Hedging Currency Depreciation Risk

Very Easy Derivative Strategies Hedging Strategies

Maria is a financial manager at a manufacturing company that exports goods internationally. Due to upcoming contracts with foreign clients, she is concerned about the potential depreciation of the foreign currency in which she will be paid. To mitigate this risk, Maria is considering her options for hedging the currency exposure. Which of the following strategies is the most appropriate for her to hedge against currency depreciation risk?

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