When There Is a Full Forward Cover with the Spot

question 4

Multiple Choice

When there is a full forward cover with the spot rate equal to the forward rate all of the following are true EXCEPT:

• A) The hedge is asymmetric.
• B) There is no uncovered exposure remaining.
• C) The total position is a perfect hedge.
• D) The currency hedge ratio is equal to 1.

---

Definitions:

Episodic Memory

The type of long-term memory that involves the recollection of specific events, situations, and experiences.

Semantic

Relating to meaning in language or logic, especially the meanings of words and phrases in context.

Episodic

Pertaining to or comprising events that are distinct and separate; often used to describe types of memory that involve recalling specific events from the past.

Short-Term

Describes a limited period, often referring to memory or goals that span a brief time from seconds to weeks.