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1.Which of the following description of the forward contract is correct? A) It increases the risk in international trade. B) It creates a cash flow

1.Which of the following description of the forward contract is correct?

A) It increases the risk in international trade.

B) It creates a cash flow problem for firms engaging in international trade.

C) It is mostly used for transactions that involve currencies that are pegged to a major currency such as US dollar or Euro.

D) It is a hedging tool.

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