please answer the following in at least 500 words 1) Describe the life span of a transaction exposure 2)The evidence is that practitioners do not hedge 100% of the time. They hedge about 70% and their great preference is the forward market. Elaborate on the implications of these facts.

please answer the following in at least 500 words 1) Describe the life span of a transaction exposure 2)The evidence is that practitioners do not hedge 100% of the time. They hedge about 70% and their great preference is the forward market. Elaborate on the implications of these facts.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 3MCQ

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please answer the following in at least 500 words

1) Describe the life span of a transaction exposure

2)The evidence is that practitioners do not hedge 100% of the time. They hedge about 70% and their great preference is the forward market. Elaborate on the implications of these facts.

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