To Hedge Payables with Futures, an MNC Would Sell Futures;

question 16

True/False

To hedge payables with futures, an MNC would sell futures; to hedge receivables with futures, an MNC would buy futures.

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Definitions:

Break-even Chart

A graphical representation used in financial analysis to show the point at which total costs and total revenue are exactly equal; thus, there is no loss or gain.

Break-even Point

The financial state where total costs and total revenues are equal, meaning there is no net loss or gain, and one has "broken even."

Break-even Chart

A graphical representation showing the relationship between total costs and total revenue at various levels of output, pinpointing where no profit or loss occurs.

Break-even Point

The point at which total cost and total revenue are equal, resulting in no net loss or gain for a business.