Assume That Cooper Co

Multiple Choice

Assume that Cooper Co. will not use its cash balances in a money market hedge. When deciding between a forward hedge and a money market hedge, it ____ determine which hedge is preferable before implementing the hedge. It ____ determine whether either hedge will outperform an unhedged strategy before implementing the hedge.

A) can; can
B) can; cannot
C) cannot; can
D) cannot; cannot