menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    International Financial Management
  4. Exam
    Exam 11: Managing Transaction Exposure
  5. Question
    An Advantage of Using Options to Hedge Is That the MNC
Solved

An Advantage of Using Options to Hedge Is That the MNC

Question 13

Question 13

True/False

An advantage of using options to hedge is that the MNC can let the option expire. However, a disadvantage of using options is that a premium must be paid for it.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q8: Blake Inc. needs €1,000,000 in 30 days.

Q9: If interest rate parity exists, the forward

Q10: The hedging of a foreign currency for

Q11: Hanson Corp. frequently uses a forward hedge

Q12: If interest rate parity exists and transaction

Q14: ​Assume that Smith Corp. will need to

Q15: If interest rate parity (IRP) exists, then

Q16: To hedge payables with futures, an MNC

Q17: If a firm is hedging payables with

Q18: Samson Inc. needs €1,000,000 in 30 days.

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines