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

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Dynamic hedging involves adjusting a hedge position as market conditions change, not necessarily applying a hedge only when expecting a currency to appreciate and removing it when expecting depreciation. It's about managing risk through continuous adjustments.

An MNC That Uses a Strategy of Dynamic Hedging Will