A forward contract hedge is very similar to a futures contract hedge, except that ____ contracts are commonly used for ____ transactions.

a.	forward; small
b.	futures; large
c.	forward; large
d.	none of the above

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Since the results of both a money market hedge and a forward hedge are known beforehand, an MNC can implement the one that is more feasible.

a. True

b. False

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If interest rate parity exists, the forward hedge will always outperform the money market hedge.

a. True

b. False

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Most MNCs do not perceive their foreign exchange management as a profit center. Rather, their main responsibility is to assess potential exposure and determine how and if the exposure should be hedged.

a. True

b. False