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  2. Topic
    Business
  3. Study Set
    Multinational Finance
  4. Exam
    Exam 9: Managing Transaction Exposure to Currency Risk
  5. Question
    To Avoid Influencing Divisional Hedging Decisions, the Corporate Treasury Should
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To Avoid Influencing Divisional Hedging Decisions, the Corporate Treasury Should

Question 1

Question 1

True/False

To avoid influencing divisional hedging decisions, the corporate treasury should charge operating divisions the same price for a currency hedge (such as a forward contract) regardless of when the hedge is executed.

Correct Answer:

verifed

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