Which of the following is NOT TRUE with respect to MNCs management of transaction exposure?

Select one:

a. An MNC may decide not to hedge if its inflow currencies are highly correlated with its outflow currencies.

b. None of the above. All of the statements are true.

c. MNCs that hedge most of their exposure do not necessarily expect that hedging will always be beneficial.

d. MNCs generally perceive their foreign exchange management as a profit centre.

e. Generally, decisions on whether to hedge, how much to hedge, and how to hedge will vary with the MNC managements degree of risk aversion.