If a Firm Is Hedging Payables with Futures Contracts, It

question 8

True/False

If a firm is hedging payables with futures contracts, it may end up paying more for the payable than it would have had it remained unhedged if the foreign currency depreciates.

---

Definitions:

Complaining

The expression of dissatisfaction or annoyance about something.

Knee Injury

Physical damage to the knee, which can involve the ligaments, tendons, joint surface, menisci, or bones, often leading to pain, swelling, or reduced function.

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage, or described in terms of such damage.

Entertaining Movie

An entertaining movie is a film designed to provide amusement and enjoyment to its audience.