If interest rate parity exists, would a forward hedge be more favorable, the same as, or less

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If interest rate parity exists, would a forward hedge be more favorable, the same as, or less favorable than a money market hedge on euro payables? Explain.

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International financial management

ISBN: 978-0324593471

9th Edition

Authors: Jeff Madura

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Question Posted: Jun 05, 2012 02:10 AM

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If interest rate parity exists, would a forward hedge be more favorable, the same as, or less

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It would be equally favorable assuming no transactions costs If IRP e...View the full answer

International financial management

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