One of the Drawbacks of Using Forward Contracts to Hedge

question 57

Multiple Choice

One of the drawbacks of using forward contracts to hedge foreign-exchange risk is that the:

• A)transaction costs in the forward market are high.
• B)forward rates are always lower than spot rates.
• C)hedged currency could appreciate during the period.
• D)hedged currency could depreciate during the period.

Recognize the differences in documenting social histories for children versus adults.

Understand the key principles of netiquette in professional email communications.

Realize the importance of confidentiality and security measures in maintaining and safeguarding records.

Acknowledge the role of clear and purposeful writing in social work and its impact on client care.

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Definitions:

Fear Of Flying

An anxiety disorder characterized by an intense fear or phobia of air travel, which can cause significant distress.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, encouraging the subject to associate certain behaviors with specific consequences.

B.F. Skinner

An influential psychologist known for his work in behaviorism and for developing the theory of operant conditioning, which involves learning through rewards and punishments.

Operant Conditioning

A behavioral modification process influenced by rewarding or disciplining actions.