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    Exam 23: Foreign Currency Transactions and Forward Exchange Contracts
  5. Question
    A Forward Contact to Buy US$450 000 for a Planned
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A Forward Contact to Buy US$450 000 for a Planned

Question 11

Question 11

Multiple Choice

A forward contact to buy US$450 000 for a planned purchase transaction of US$600 000 has a hedge ratio of:


A) 25%.
B) 75%.
C) 15%.
D) 133%.

Correct Answer:

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