In a Forward Hedge, If the Forward Rate Is an Accurate

question 82

Multiple Choice

In a forward hedge, if the forward rate is an accurate predictor of the future spot rate, the real cost of hedging payables will be:

• A) highly positive.
• B) highly negative.
• C) zero.
• D) none of the above

---

Definitions:

Cell Margins

The spacing or padding inside a cell in a table or a spreadsheet, defining the distance between the cell content and its borders.

Cell Width

Refers to the horizontal dimension of a cell in a spreadsheet or table, which can be adjusted to accommodate content.

Right Indent Marker

A visual indicator in word processing programs that shows where the right edge of the text will align within a paragraph.

Hanging Indent Marker

A tool in word processing software that allows the creation of a hanging indent, where the first line is not indented but subsequent lines are.