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    International Financial Management Study Set 1
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    Exam 5: Currency Derivatives
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    Currency Call Options Allow the Purchaser to Lock in the Price
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Currency Call Options Allow the Purchaser to Lock in the Price

Question 72

Question 72

True/False

Currency call options allow the purchaser to lock in the price paid for a currency. Therefore, they are often used by MNCs to hedge foreign currency payables.

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