An MNC has fixed assets in Europe that it expects to sell in the distant future. In order to hedge the sale of these assets in the distant future, the MNC could create a(n) ____ that ____ the expected value of the assets in the future.

Question

​An MNC has fixed assets in Europe that it expects to sell in the distant future. In order to hedge the sale of these assets in the distant future, the MNC could create a(n) ____ that ____ the expected value of the assets in the future.

Quizplus · Accepted Answer

The MNC could create a liability that matches the expected value of the assets in the future to hedge against currency risk or other financial risks associated with the sale.

​An MNC Has Fixed Assets in Europe That It Expects

An MNC Has Fixed Assets in Europe That It Expects