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With Regard to Operational Hedging Versus Financial Hedging

Question 29

Multiple Choice

With regard to operational hedging versus financial hedging,


A) operational hedging provides a more stable long-term approach than does financial hedging.
B) financial hedging, when instituted on a rollover basis, is a superior long-term approach to operational hedging.
C) since they both have the same goal, stabilizing the firm's cash flows in domestic currency, they are fungible in use.
D) none of the above

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