One way to hedge its currency risk for the us firm is to, Financial Management

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One way to hedge its currency risk for the us firm is to

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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