Hedging a foreign currency payable is protecting against the loss of a forecasted transaction.

Name: Hedging a foreign currency payable is protecting against the loss of a forecasted transaction.
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Question

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Hedging a foreign currency payable is protecting against the risk of currency value changes affecting the cost of a known obligation, not a forecasted transaction. Forecasted transactions are future transactions that are anticipated but not yet committed.

Hedging a Foreign Currency Payable Is Protecting Against the Loss