is (are) not a limitation of hedging translation exposure. a. Inaccurate stock price forecasts b. Inadequate forward contracts for some currencies c. Taxation on gains from forward contracts d. Increased transaction exposure

Inaccurate stock price forecasts ( A )

Explanation:

Hedging is an investment position that is used to protect a company against potential losses/ adverse price movement in the financial market, Hedging is a trading strategy employed by large firms. and the stock price forecasts is not a limitation to this strategy because the strategy is used to offset losses regardless of the direction of the price movement.

The translation exposure is the exposure a company exposes its income to while trading in the financial/stock market because its income/equity will change with change in the exchange rates in the market. taxation, increased transaction exposure and inadequate forward contracts for some currencies are a limitations of hedging translation exposure.

answer; depth;

answer; buying the bill at a discount from the face value to be received at maturity;