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When comparing the forward hedge to the options hedge, the MNC can easily determine which hedge...

When comparing the forward hedge to the options hedge, the MNC can easily determine which hedge is more desirable, because the cost of each hedge can be determined with certainty.​ a. ​True b. ​False

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Answer #1

Answer: False.

Hedging- It is a strategy of minimizing risk.

Cost of hedging cannot be determined with certainty at the time of purchasing the options, cost of hedging can be estimated but cannot be determined exactly.

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