In a Forward Hedge, If the Forward Rate Is an Accurate

question 64

Multiple Choice

In a forward hedge, if the forward rate is an accurate predictor of the future spot rate, the real cost of hedging payables will be:​

• A)highly positive.
• B)highly negative.
• C)zero.
• D)none of the above

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Definitions:

Depth-Vision Cues

Visual indicators that allow individuals to perceive the world in three dimensions and judge the distance of objects.

Binocular

Refers to the use of both eyes for vision, which provides depth perception and a wider field of view.

Perceptual Constancy

The cognitive ability to perceive objects as unchanging despite changes in sensory input, such as variations in illumination, angle, or distance.

Parallel Processing

The ability of the brain to simultaneously process incoming stimuli or information, enhancing efficiency in cognitive functioning.