In a Forward Hedge,the Cash Flow Equals

question 9

Multiple Choice

In a forward hedge,the cash flow equals:

• A)the amount of the foreign currency used in the hedge times the forward rate.
• B)the amount of the currency the firm usually transacts business in times the forward rate.
• C)the unhedged cash flow times the forward rate.
• D)the unhedged cash flow.

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Definitions:

Mindsets

The established set of attitudes held by someone, which can greatly affect their behavior and perspective.

Disorganized

Lacking structure or order; not systematically planned or arranged, often leading to inefficiency or difficulty in locating items or information.

Bossy

Describes a person who frequently gives orders or demands in an authoritative and often domineering manner.

Plumbing Problem

Issues associated with the systems of pipes, fittings, and fixtures responsible for the distribution and use of water in a building.