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What is the cash - flow cost of hedging translation exposure with a currency option? Question 8 options: The interest rate differential between the foreign

What is the cash-flow cost of hedging translation exposure with a currency option?
Question 8 options:
The interest rate differential between the foreign subsidiary and the parent's currencies.
The unknown(at times of hedging) speculative gain/loss resulting from exercising the option + option premium
The unknown (at times of hedging) percentage of the actual foreign currency depreciation/appreciation.
The option premium on the currency in which the exposure is measured

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