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    Exam 7: Foreign Currency Transactions and Forward Exchange Contracts
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    A Forward Contact to Buy US$40 000 for a Planned
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A Forward Contact to Buy US$40 000 for a Planned

Question 16

Question 16

Multiple Choice

A forward contact to buy US$40 000 for a planned purchase transaction of US$50 000 has a hedge ratio of:


A) 40%.
B) 125%.
C) 80%.
D) 20%.

Correct Answer:

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