Long-Term Forward Contracts Are a Possible Way to Hedge the Distant

question 45

True/False

Long-term forward contracts are a possible way to hedge the distant sale of fixed assets in foreign countries, but they may not be available for many emerging market currencies.

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Definitions:

Administrator

An independent and suitably qualified person appointed to take full control of a company in an attempt to save either the company or the company’s business.

Execute a Document

The act of signing a document or contract officially, thereby making it legally binding.

Members' Voluntary Winding Up

A process initiated by the shareholders of a solvent company to voluntarily dissolve and liquidate its assets under the supervision of a liquidator.

Voluntary Administration

A process for insolvent companies to resolve debt issues with creditors through an independent administrator.