When investors hedge themselves from risk using forward contracts,the international investment is considered:

Name: When investors hedge themselves from risk using forward contracts,the international investment is considered:
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Question

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When investors use forward contracts to protect themselves from the risk associated with international investments, the investment is considered "covered." This means that they have taken steps to mitigate potential losses due to currency fluctuations.

When Investors Hedge Themselves from Risk Using Forward Contracts,the International