Macrohedging Uses a Derivative Contract, Such as a Futures or Forward

question 3

True/False

Macrohedging uses a derivative contract, such as a futures or forward contract, to hedge a particular asset or liability risk.

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Definitions:

Export

The act of shipping goods and services from one country to another for sale or trade.

Bulky

Describes items that are large in volume or size compared to their weight, often resulting in challenges with transport, storage, or handling.

Heavy Machineries

Large and heavy vehicles or equipment used for construction, industrial, or agricultural purposes.

Greenfield Operation

A project where a company builds its operations in a foreign country from the ground up, typically in an area where no previous facilities exist.