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According to the purchasing power parity theory: OA. The prices of the same basket of products in two countries will never be the same if
According to the purchasing power parity theory: OA. The prices of the same basket of products in two countries will never be the same if measured in a common currency. OB. The prices of the same basket of products in two countries will be the same only under special circumstances. C. The prices of the same basket of products in two countries will be the same if measured in a common currency. D. None of the above are correct. 2. Which of the following statements is correct? A. Forward contracts are used to hedge the risk of a change in the exchange rate. OB. Forward contracts do not guarantee the buy or sell price of a currency. C. The forward rate is established at the end of the forward contract. D. None of the above are correct. 3.Which of the following statements is correct? A. Forward contracts are used to hedge the risk of a change in the exchange rate. OB. Forward contracts do not guarantee the buy or sell price of a currency. C. The forward rate is established at the end of the forward contract. D. None of the above are correct
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