When comparing the forward hedge to the money market hedge, the MNC can easily determine which hedge is more desirable, because the cost of each hedge can be determined with certainty.

Question

Quizplus · Accepted Answer

Both forward and money market hedges allow for the determination of their costs upfront, enabling an MNC to compare and decide which hedge is more desirable based on cost certainty.

When Comparing the Forward Hedge to the Money Market Hedge