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Forward Contracts ________

Question 38

Multiple Choice

Forward contracts ________.


A) typically have a maturity of more than 2 years.
B) that are shorter-dated have relatively large bid-ask spreads.
C) are not attractive for hedging long-dated foreign currency exposure.
D) that are longer-dated have a the bid-ask spread (for a given currency) that decreases with the maturity of the contract.

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