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Assume zero transaction costs. If the 180-day forward rate underestimates the spot rate 180 days from now, then the real cost of hedging payables with

Assume zero transaction costs. If the 180-day forward rate underestimates the spot rate 180 days from now, then the real cost of hedging payables with a forward contract will be a. positive if the forward rate exhibits a premium, and negative if the forward rate exhibits a discount. b. positive. c. negative. d. zero

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