​The Real Cost of Hedging Payables with a Forward Contract

question 71

Multiple Choice

​The real cost of hedging payables with a forward contract equals:

• A) ​the dollar cost of hedging minus the dollar cost of not hedging.
• B) ​the dollar cost of not hedging minus the dollar cost of hedging.
• C) ​the dollar cost of hedging divided by the dollar cost of not hedging.
• D) ​the dollar cost of not hedging divided by the dollar cost of hedging.

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Definitions:

Epinephrine

A hormone and neurotransmitter also known as adrenaline, involved in the body's fight-or-flight response, increasing heart rate and blood flow.

Lymphocytes

A type of white blood cell involved in the immune response to protect the body against infections and other diseases.

Cholesterol

A waxy substance found in the blood, essential for building cells but high levels can lead to heart disease.

General Adaptation Syndrome

is a three-phase model that describes the body's physiological responses to stress: alarm, resistance, and exhaustion.