Hedging a purchase requiring settlement in a foreign currency:

A) will always result in a lower cost than just waiting to purchase the foreign currency on the settlement date.
B) will always result in a higher cost than just waiting to purchase the foreign currency on the settlement date.
C) increases the risk associated with international transactions.
D) decreases the risk associated with international transactions.
E) both a. and d. are correct.


D

Business

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