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A Derivatives Hedge That Seeks to Eliminate Translation Exposure

Question 81

Multiple Choice

A derivatives hedge that seeks to eliminate translation exposure


A) eliminates any mismatch of the rate of change in net assets and the rate of change in net liabilities denominated in the same currency.
B) really involves speculation about foreign exchange rate changes.
C) simultaneously goes long and short in currency futures contracts.
D) none of the options

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