Forward hedging of receivables will be preferred to money market hedging if the actual forward rate is:

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higher than the expected spot rate

higher than the interest parity forward rate

lower than the expected spot rate

equal to the expected spot rate

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International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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Posted Date: Apr 08, 2022 07:34 AM

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Forward hedging of receivables will be preferred to money market hedging if the actual forward rate is:

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ANSWER B higher than the interest parity forward rate If the actual forward exchange rate is higher ... View the full answer

International Financial Management

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