In Evaluating the Risk-Adjusted Asset Value of Foreign Exchange Forward

question 34

True/False

In evaluating the risk-adjusted asset value of foreign exchange forward contracts,the value of the current exposure can be either positive or zero.

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Definitions:

Respondeat Superior

A legal doctrine holding employers liable for the actions of their employees performed within the scope of their employment.

Agent's Torts

Wrongful acts committed by an agent or employee that result in liability for the employer or principal.

Undisclosed Principal

A situation in a contract where the agent acts on behalf of a principal whose identity is not revealed to the third party.

Satisfied Judgment

A court decision that has been fully complied with, where all ordered payments or actions have been completed.