Multiple Choice
In relation to potential FX exposures,historical data suggests to manage FX exposures:
A) all importers, exporters, lenders and borrowers in capital markets tend to use currency futures contracts and cross-currency swaps.
B) in commercial trade transactions importers and exporters use currency futures contracts and in capital market transactions lenders and borrowers use forward exchange contracts.
C) in commercial trade transactions importers and exporters typically use forward exchange contracts and currency options while in capital markets transactions lenders and borrowers tend to use currency futures contracts and cross-currency swaps.
D) All importers and exporters in trade as well as lenders and borrowers in capital market transactions tend to use forward exchange contracts and currency options.
Correct Answer:

Verified
Correct Answer:
Verified
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