Which of the following hedging strategies is not used to minimize transaction exposure?

Question

Quizplus · Accepted Answer

The eurobond market is not a hedging strategy for minimizing transaction exposure. Eurobonds are simply bonds issued in a currency other than the currency of the country where the bond is issued. While investing in eurobonds can provide diversification benefits, it does not directly hedge against transaction exposure. The other choices - forward exchange market, money market, and currency futures market - are all commonly used hedging strategies for minimizing transaction exposure.

Which of the Following Hedging Strategies Is Not Used to Minimize