Which of the following statements is true?
A) Exchange rate exposure on a foreign asset can be eliminated completely via hedging in all cases.
B) Exchange rate exposure on a foreign asset can be eliminated completely via hedging if the value of the foreign asset is fixed.
C) Exchange rate exposure on a foreign asset can be eliminated completely via hedging if the value of the foreign asset is variable.
D) Exchange rate exposure on a foreign asset can never be eliminated completely.
Correct Answer:
Verified
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