If the Maturity of a Currency Position and the Maturity

question 41

Multiple Choice

If the maturity of a currency position and the maturity of the hedging instrument are the same,then:

• A)all risk is eliminated.
• B)cash inflows and cash outflows are offsetting.
• C)maturities match.
• D)hedging is not necessary.

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Definitions:

Modern View

A contemporary perspective or understanding of a subject, reflecting recent developments or ideas.

Existential Import

Existential Import refers to the assumption within a proposition that at least one member of the class exists.

Traditional View

A perspective or belief that is rooted in long-standing customs, practices, or values.

Existential Import

In logic, existential import refers to the implication that the subjects of a statement necessarily exist. It is crucial in understanding categorical propositions.