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A Disadvantage of Real Asset Hedges Is That ______

Question 40

Multiple Choice

A disadvantage of real asset hedges is that ______.


A) bid-ask spreads can be large
B) daily marking to market can cause cash flow mismatches
C) option premiums can be large
D) they are unlikely to be zero-NPV transactions
E) they come in only a limited number of currencies and maturities

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