When a known future cash outflow in a foreign currency is hedged by a company using a
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a) The value of the foreign currency falls rapidly during the life of the contract
b) The value of the foreign currency rises rapidly during the life of the contract
c) The value of the foreign currency first rises and then falls back to its initial value
d) The value of the foreign currency first falls and then rises back to its initial value
Assume that the forward price equals the futures price.
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