Question: Repeatedly hedging short - term payables does not completely eliminate exchange rate risk. There are no limitations on hedging payables. Hedging payables can lead to

Repeatedly hedging short-term payables does not completely eliminate exchange rate risk.
There are no limitations on hedging payables.
Hedging payables can lead to lower cash outflows than not hedging.
Hedging with currency call options on payables requires the MNC to purchase that currency.

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