If You Have Entered into a Currency Futures Hedge for the Japanese

question 135

True/False

If you have entered into a currency futures hedge for the Japanese yen in connection with buying Japanese equipment and if the yen goes from 110 yen/$1 to 100 yen/$1, you will lose in the spot market but have an offsetting gain in the futures market.

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Definitions:

Counter Accum

It usually refers to a register in PLC programming that accumulates counts, often used to track occurrences of specific events or operations over time.

RES Instruction

A command in programming languages that resets a specific variable, counter, or bit to its default state.

Reset To Zero

The action of setting a numerical value or count back to zero in systems, circuits, or software applications.

CTD

Stands for Countdown Timer Delay, often used in electronics and programming to introduce a delay before an action is executed.