A mexican firm signed a contract to purchase a cargo ship, Ask an Expert

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A mexican firm signed a contract to purchase a cargo ship from a U.S. based multinational corporation with the contract stipulating the settlement currency in mexican dollar 6 months from now. One way to hedge its currency risk for the U.S. firm is to sell mexican dollars forward.

True or False and explain why.

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Financial Management, Finance

Category:- Financial Management
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