Quiz Ch 22 – Drawbacks of Forward Contracts in Foreign Exchange Hedging

Fundamentals of Corporate Finance

Brealey, Myers, and Marcus

10th Edition

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What is a potential drawback of using forward contracts to hedge foreign exchange risk from payables?

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  • Search Terms: a) always appreciate are contracts costs could currency depreciate drawbacks during exchange foreign forward from hedge hedged high. b) in is lower market of one payables period. period. d) rates rates. c) risk spot than that the the: to transaction using
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