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One Possible Reason for a Balance Sheet Hedge Could Be

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One possible reason for a balance sheet hedge could be because the foreign subsidiary is about to be liquidated, so that value of its Cumulative Translation Adjustment (CTA) would be realized.


Definitions:

Peanut Farmers

Individuals or entities engaged in the cultivation and production of peanuts as a crop.

Total Revenue

The total income generated by a firm from selling its goods or services, calculated by multiplying the selling price per unit by the number of units sold.

Bushel

A measure of volume that is used in the United States for agricultural crops, equivalent to approximately 35.24 liters.

Quantity Sold

The total number of units of a product or service that have been sold within a specific time period.

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