Question: In hedging foreign currency receivables, the outcome from a forward position will be identical to the outcome from a money market hedge (also known as

In hedging foreign currency receivables, the outcome from a forward position will be identical to the outcome from a money market hedge (also known as a spot transaction hedge) if

a purchasing power parity holds

b interest rate parity holds

c either purchasing power parity or interest rate parity holds

d both purchasing power parity and interest rate parity holds

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