From the Perspective of Detroit Co

question 39

Multiple Choice

From the perspective of Detroit Co., which has payables in Mexican pesos, hedging the payables is especially beneficial if the expected real cost of hedging the payables is:

• A) negative.
• B) zero.
• C) positive and large.
• D) positive and small.

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Definitions:

Water

A tasteless, odorless, and colorless chemical substance composed of hydrogen and oxygen, essential for most forms of life on Earth.

Chemical Energy

The potential of a chemical substance to undergo a transformation through a chemical reaction to transform other chemical substances.

Potential Energy

The energy held by an object due to its location in comparison to other objects, internal tensions, electrical charge, and various other aspects.

Physiological Processes

The functions and activities within living organisms and their parts, including biochemical, mechanical, and electrical functions that contribute to the life of an organism.