If a Firm Is Hedging Payables with Futures Contracts, It

question 17

True/False

If a firm is hedging payables with futures contracts, it may end up paying more for the payables than it would have had it remained unhedged if the foreign currency depreciates.

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Definitions:

Brain

The central organ of the human nervous system, located in the skull, responsible for processing sensory information, regulating bodily functions, and enabling cognition and emotions.

Embryo

An early stage of development in multicellular organisms after fertilization and before the fetus stage in humans.

Conception

The union of a sperm cell and an ovum that occurs when the chromosomes of each of these cells combine to form 23 new pairs.

Infants

Young children from birth to one year of age, who are in the earliest stages of childhood development.