A derivatives hedge that seeks to eliminate translation exposure
A) eliminate any mismatch of the rate of change in net assets and the rate of change in net liabilities denominated in the same currency.
B) really involves speculation about foreign exchange rate changes.
C) by simultaneously going long and short in currency futures contracts.
D) none of the above
Correct Answer:
Verified
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A)is not entity specific, rather it
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Q64: The source of translation exposure
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Q70: With regard to foreign currency translation methods
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