Long-Term Forward Contracts Are a Possible Way to Hedge the Distant

question 52

True/False

Long-term forward contracts are a possible way to hedge the distant sale of fixed assets in foreign countries, but they may not be available for many emerging market currencies.

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Definitions:

Bilateral Contract

A promise exchanged for a promise.

Scott V. Mid-Carolina Homes

A legal case that likely involves dispute resolution between an individual and a housing company, although specific details may vary.

Mutual Mistake

Mutual mistake is a situation in which all parties to a contract have a shared misunderstanding about a fundamental fact or assumption underlying that contract.

Unilateral Mistake

A legal term referring to a situation where only one party to a contract is mistaken about a material fact relating to the agreement.