Which one of the following would be the most logical reason to use a synthetic forward contract to hedge?

A) forward contracts are not available in the currency of choice
B) when time horizons are short, forward contracts can be expensive
C) the underlying transaction is too risky
D) the underlying transaction gives you an asset

Answer: A

Business

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What will be an ideal response?

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Techniques developed to keep the analysis effort minimal, yet still effective include:

A) JAD. B) interviewing. C) observations. D) document analysis. E) questionnaires.

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