The various hedging alternatives explored (the forward, money market, and purchase option hedges) only work to protect the value of the exposed asset at the time of maturity.

Question

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The various hedging alternatives explored can provide protection for the exposed asset beyond the time of maturity. For example, a forward contract can protect the value of the asset throughout the duration of the contract, not just at the time of maturity. Similarly, a money market hedge can provide ongoing protection by continuously rolling over short-term hedges.

The Various Hedging Alternatives Explored (The Forward, Money Market, and Purchase