A Way in Which a Foreign Currency Transaction Can Be

Multiple Choice

A way in which a foreign currency transaction can be hedged is:

A) Buy (or sell) foreign currency at the date of the initial transaction
B) Enter into a forward rate agreement to fix the cost of the currency at a fixed date in the future
C) Enter into a transaction which neutralises the risk (e.g., have accounts receivable and accounts payable in the same currency with the same payment dates)
D) All of the above