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Suppose that the Australian dollar has appreciated substantially against the Euro over the past year

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1. Suppose that the Australian dollar has appreciated substantially against the Euro over the past year. This movement is likely to have benefitted _________, while negatively affecting __________. A. Australian Importers; German Exporters. B. German Importers; German Exporters. C. Australian Exporters; German Exporters. D. Australian Importers; German Importers. E. None of the options.

2. Hoodie Inc. in an Australian-based firm that is expecting to receive ¥ 4,000,000 Japanese Yen in 60 days. Over that time, Hoodie Inc. will be negatively affected if the Japanese Yen ____________ against the Australian Dollar. Therefore, they can hedge their exchange rate exposure by ______________. A. Appreciates; selling ¥ forward or buying put options on Japanese ¥. B. Depreciates; buying ¥ forward or buying call options on Japanese ¥. C. Appreciates; selling ¥ forward or selling put options on Japanese ¥. D. Depreciates; selling ¥ forward or buying put options on Japanese ¥. E. None of the options.