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With respect to the practice of using forward contracts to eliminate the exchange-rate risk associated with a receiving a future payment in a foreign currency, which of the following is correct? A firm that expects to receive a foreign-currency payment is: A. “short” the currency and should go long the forward contract on the foreign currency. B. “short” the currency and should short the forward contract on the foreign currency. C. “long” the currency and should short the forward contract on the foreign currency. |