When There Is a Full Forward Cover with the Spot

question 4

Multiple Choice

When there is a full forward cover with the spot rate equal to the forward rate all of the following are true EXCEPT:

• A) The hedge is asymmetric.
• B) There is no uncovered exposure remaining.
• C) The total position is a perfect hedge.
• D) The currency hedge ratio is equal to 1.

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Definitions:

Persuasion

The act of convincing someone to do or believe something through reasoning or argument.

Hard Sell

A sales strategy that uses direct and forceful tactics to persuade customers to buy immediately.

Unsolicited Sales Message

A promotional message received by a consumer without prior request, often perceived as intrusive or spam.

Attention-Getter

A technique or statement used to capture the audience's interest or focus at the beginning of a speech or presentation.