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    International Financial Management Study Set 1
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    Exam 11: Managing Transaction Exposure
  5. Question
    If Interest Rate Parity Exists, and Transaction Costs Do Not
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If Interest Rate Parity Exists, and Transaction Costs Do Not

Question 49

Question 49

Multiple Choice

If interest rate parity exists, and transaction costs do not exist, the money market hedge will yield the same result as the ____ hedge.


A) put option
B) forward
C) call option
D) none of the above

Correct Answer:

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