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17 The tradeoff when considering alternative call options to hedge a payable denominated in a...

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Accounting

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17 The tradeoff when considering alternative call options to hedge a payable denominated in a forei currency is that an MNC can obtain a call option with a lower strike price, but would have to pay a higher premium A True B False If a firm is hedging payables with forward contracts, it may end up paying more for the payable than it would have had it remained unhedged if the foreign currency depreciates. A True B False

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