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When MNCs want to hedge receivables, they should use forward contracts. On the other hand, when they want to hedge payables, they should use Money

When MNCs want to hedge receivables, they should use forward contracts. On the other hand, when they want to hedge payables, they should use Money market hedge.

Question 22 options:

False

False, because MNCs should use option to hedge payable instead.

True

True, because the real cost of hedging is always lower with a forward hedge.

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