A Symmetric Hedge Is A

question 22

Multiple Choice

A symmetric hedge is a:

• A)fixed hedge that locks in currency values.
• B)hedge that allows a firm to gain exactly as much as it loses on the exposure being hedged.
• C)flexible hedge that allows currency values to be locked only when the firm pursuing the hedge decides to use the hedge.
• D)flexible hedge that allows the currency values to change until a specified date in the future.

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Definitions:

Affiliated

Being officially attached or connected to an organization.

Piece-rates

A pay system where employees are compensated based on the amount of work they produce or complete.

Product Quality

The characteristics of a product that determine its ability to satisfy stated or implied needs.

Marginal Resource Cost

The additional cost incurred by acquiring one more unit of a resource.