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Basic Question 17 of 20
A company might wish to use a/an ______ for hedging purposes if they found that an anticipated currency cash flow, which had already been protected with a forward outright contract, was actually going to be delayed for one additional month.
B. FX swap.
C. FX option.
A. FX forward contract.
B. FX swap.
C. FX option.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain spot and forward rates and calculate the forward premium/discount for a given currency;
calculate the mark-to-market value of a forward contract;
CFA® 2025 Level II Curriculum, Volume 1, Module 8.