Which of the following is not true regarding hedging translation exposure with the use of a forward contract? (Assume there is only one foreign subsidiary.)

a. If the foreign subsidiary generates income, depreciation of the underlying currency will result in real losses.

b. If the subsidiary generates income, hedging with a forward contract can backfire if the underlying currency appreciates.

c. Since consolidating financial statements requires a weighted average exchange rate, a perfect forward hedge is nearly impossible.

d. The gain or loss resulting from a hedging strategy is a real gain or loss, while the translation gain or loss is a real loss.

e. All of these choices are true.