An importer's financial market hedging alternatives include each of a) through d) EXCEPT
A) Buy the foreign currency with long-dated forward contracts.
B) Invest in long-dated foreign bonds.
C) Use currency swaps to acquire financial assets in the foreign currency.
D) Use a rolling hedge to repeatedly sell the foreign currency.
E) None of the above

Question

Quizplus · Accepted Answer

A rolling hedge involving repeatedly selling the foreign currency is not a hedging alternative for an importer. Importers need to buy foreign currency to pay for imports, not sell it.

An Importer's Financial Market Hedging Alternatives Include Each of A)