MCQOPTIONS
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| 1. |
The real cost of hedging payables with a forward contract equals: |
| A. | the nominal cost of hedging minus the nominal cost of not hedging. |
| B. | the nominal cost of not hedging minus the nominal cost of hedging. |
| C. | the nominal cost of hedging divided by the nominal cost of not hedging. |
| D. | the nominal cost of not hedging divided by the nominal cost of hedging. |
| Answer» B. the nominal cost of not hedging minus the nominal cost of hedging. | |