MNCs Should Hedge Receivables Using Bear Spreads Only for Currencies

question 66

True/False

MNCs should hedge receivables using bear spreads only for currencies that are expected to appreciate substantially prior to option expiration.

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Definitions:

Culture of the Organization

The shared norms, values, and practices that guide and shape behaviors and attitudes within a company or institution.

Incentives

Rewards or benefits offered to motivate individuals or groups to behave in a certain way or to achieve specific objectives.

The World Is Flat

A metaphor that describes the increase in global interconnectedness, suggesting that geographical and geopolitical barriers are less relevant in the modern world.

Thomas Friedman

An American journalist and author known for his analysis on global affairs, particularly globalization and the technological world.