An MNC that uses a strategy of dynamic hedging will apply a hedge when it expects a foreign currency that it holds to appreciate, and it will remove the hedge when it expects the currency to depreciate.

Question

Quizplus · Accepted Answer

Dynamic hedging involves adjusting a hedge position as market conditions change, but it typically aims to protect against adverse movements in currency values, not to speculate on currency appreciation or depreciation.

An MNC That Uses a Strategy of Dynamic Hedging Will