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  3. Study Set
    International Financial Management Study Set 1
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    Exam 11: Managing Transaction Exposure
  5. Question
    If Interest Rate Parity Exists, and Transaction Costs Do Not
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If Interest Rate Parity Exists, and Transaction Costs Do Not

Question 52

Question 52

True/False

If interest rate parity exists, and transaction costs do not exist, the option hedge will yield the same results as no hedge.

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