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    Macomb Corporation: hedge exchange rate risk with Yen put, call or futures

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    Macomb Corporation is a U.S. firm that invoices some of its exports in Japanese yen. If it expects the yen to weaken, it could _______ to hedge the exchange rate risk on those exports.

    sell yen put options
    buy yen call options
    buy futures contracts on yen
    sell with futures contracts on yen

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    Solution Preview

    The firm exports to Japan, and receives japanese yen. So the firm wants some ...

    Solution Summary

    In a couple of sentences, the response explains the concept and the answer.