The Hedging of a Foreign Currency for Which No Forward

question 10

True/False

The hedging of a foreign currency for which no forward contract is available with a highly correlated currency for which a forward contract is available is referred to as cross-hedging.

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Definitions:

Just Cause

A criterion under the just war theory, which states that to be morally permissible, a war must be waged only for honorable motives.

International Organization

An entity established by a treaty or other instrument governed by international law and possessing its own international legal personality.

International Court of Justice

The principal judicial entity of the United Nations, tasked with settling legal disputes between states and giving advisory opinions on international legal issues.

Swedish Corporation

A company incorporated under the laws and regulations of Sweden, often characterized by specific corporate governance and tax structures.