An Example of Cross-Hedging Is

question 39

Multiple Choice

An example of cross-hedging is:

• A) find two currencies that are highly positively correlated; match the payables of the one currency to the receivables of the other currency.
• B) use the forward market to sell forward whatever currencies you will receive.
• C) use the forward market to buy forward whatever currencies you will receive.
• D) B and C

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Definitions:

Permissive

An adjective describing a type of behavior or attitude that is tolerant, lenient, or not strict.

Authoritative

Describing a commanding and confident nature or approach, often associated with respect and compliance from others.

Parenting Style

The manner in which parents rear and interact with their children, often categorized into types such as authoritative, authoritarian, permissive, and uninvolved.

Disengaged

Withdrawn or detached from a situation or involvement, not emotionally or intellectually interested.