After Assessing the Risk of the Various Exposures,a Company Decides

Multiple Choice

After assessing the risk of the various exposures,a company decides to take a money market hedge.The general principle of a money market hedge is to:

A) transact in the money market of the country whose currency you are exposed to.
B) borrow the home currency and deposit it in the foreign money market until the future date of the exposed transaction.
C) take a position in the home money market today that establishes a future obligation that is the opposite of the exposed underlying transaction.
D) none of the given choices are correct.