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.

---

Definitions:

Union Dues

Fees paid by workers to labor unions to cover the cost of union representation and activities.

Agent's Signature

An agent's signature is the act of signing documents by a person (the agent) who has been authorized to act on behalf of another person or entity (the principal), indicating consent or agreement.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money to a specified person or the bearer under particular terms.

Dishonored

Refused; specifically, a payment that has been refused despite a holder’s presenting an instrument in a timely and proper manner.