In International Finance, Hedging Indicates

Multiple Choice

In international finance, hedging indicates:

A) not being able to make a commitment to buy or sell.
B) delaying a purchase of foreign exchange, hoping the price will fall.
C) simultaneously buying several currencies to ensure that at least one will rise in value.
D) avoiding risk of loss by offsetting an obligation to buy a foreign currency by locking in a contract to sell it at the same time.