• Which of the below statements is NOT true:
• A. The objective of currency hedging is to eliminate the change in the value of the exposed asset or cash flow from a change in exchange rates.
• B. Hedging is accomplished by combining the exposed asset with a hedge asset to create two asset portfolio in which the two assets react in relatively equal directions to an exchange rate change.
• C. With the use of forwards, a perfect hedge is possible.

The two basic methods for the translation of foreign subsidiary financial statements are the ________ method and the ________ method.

A. current rate; temporal

• B. temporal; proper timing
• C. current rate; future rate
• D. none of the above

• D. a & b