Multiple Choice
The preferred way to hedge transaction exposure to currency risk is ______. *
A) by offsetting exposures within the firm
B) through forward currency contracts
C) through futures contracts
D) through swap contracts
E) None of the above-exposures should be left unhedged
Correct Answer:

Verified
Correct Answer:
Verified
Q2: Financial market hedges work best for _
Q3: Transaction exposure to currency risk is easy
Q4: Financial market hedges include each of a)
Q5: The multinational corporation's economic exposure to currency
Q6: A currency swap is an exchange of
Q8: The option premium compensates the seller for
Q9: Geographically diversified operations provide a natural hedge
Q10: Currency options are the most popular currency
Q11: An option premium is paid by the
Q12: A currency call option gives the buyer