In 1996,DEC Hedges a FF 3

question 29

Multiple Choice

In 1996,DEC hedges a FF 3.2 million receivable due in 180 days.The current spot rate is FF 1 = $0.18834 and the 180-day forward rate is FF 1 = $0.18625.If the spot rate at the end of 180 days is $0.18728,how much has the forward market hedge cost DEC?

• A)$6,688
• B)$3,392
• C)$3,296
• D)DEC gains $6,688 on the hedge

---

Definitions:

Sexual Activity

Behaviors that involve the sexual organs and are usually performed for pleasure, reproduction, or both.

Risk Factors

Elements or conditions that increase the likelihood of an undesirable outcome.

U.S. Teens

Individuals aged between 13 and 19 residing in the United States, encompassing a diverse group going through adolescence.

Sexually Transmitted

Referring to infections that are passed from one person to another through sexual contact.