Question: In a hedging situation, forward and futures contracts A. Cannot protect the holder against the isk of adverse movements in exchange rates. B. Should always

In a hedging situation, forward and futures contracts

A. Cannot protect the holder against the isk of adverse movements in exchange rates.

B. Should always be used instead of options for hedging by multinational corporations.

C. Can expire worthless if the holder so chooses.

D. Eliminate the possibility of gaining a windfall profit from favorable movements in exchange rates.

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