Hedging an FX Risk Exposure with a Forward Contract Will

question 34

True/False

Hedging an FX risk exposure with a forward contract will always provide a better outcome than not hedging the exposure.

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Definitions:

Median

A statistical measure representing the middle value in a data set, where half the numbers are above and half below.

Mode

In statistics, the value that appears most frequently in a data set; in common usage, a way or manner in which something occurs or is experienced, expressed, or done.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.

Mean

A numerical metric that denotes the central value of a numerical array, determined by summing all the elements in the array and then dividing by the count of those elements.