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    International Financial Management
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    Exam 11: Managing Transaction Exposure
  5. Question
    The Trade-Off When Considering Alternative Call Options to Hedge a Currency
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The Trade-Off When Considering Alternative Call Options to Hedge a Currency

Question 45

Question 45

True/False

The trade-off when considering alternative call options to hedge a currency position is that an MNC can obtain a call option with a higher exercise price, but would have to pay a higher premium.

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