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  3. Study Set
    Advanced Accounting Concepts and Practice
  4. Exam
    Exam 14: Using Derivatives to Manage Foreign Currency Exposures
  5. Question
    When a Domestic Importer Desires to Hedge a Foreign Currency
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When a Domestic Importer Desires to Hedge a Foreign Currency

Question 138

Question 138

True/False

When a domestic importer desires to hedge a foreign currency payable using an FX forward, the importer will contract to sell a specified number of foreign currency units.

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