Transaction exposure to currency risk can be effectively hedged with which of the following hedging instruments or strategies?
A) currency forwards or futures
B) leading and lagging
C) international diversification *
D) More than one of the above
E) None of the above

Question

Quizplus · Accepted Answer

Transaction exposure to currency risk can be effectively hedged using currency forwards or futures and leading and lagging strategies, making "More than one of the above" the correct choice.

Transaction Exposure to Currency Risk Can Be Effectively Hedged with Which