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If a Corporation Hedges Payables with Currency Call Options, It

Question 62

Multiple Choice

If a corporation hedges payables with currency call options, it will ____ if the value of the foreign currency is ____ than the exercise price when the payables are due.


A) exercise the option; greater
B) exercise the option; less
C) let the option expire; greater
D) let the option expire; less
E) A and D

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