

MCQOPTIONS
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1. |
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 |
Answer» B. use the forward market to sell forward whatever currencies you will receive. | |