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:

Power Equally

Power Equally emphasizes the balanced distribution of control, influence, and authority among all members within a group or society.

Commitment

A promise or firm decision to do something or to be loyal to a cause or individual, often requiring dedication and hard work.

Intermediate Distance

A term used to describe a space or interval that is neither too close nor too far, typically used in contexts such as photography or athletics.

Jealous Aggression

Hostile or violent behavior motivated by jealousy, often occurring in romantic or sexual relationships.