A ____ is not normally used for hedging long-term transaction exposure.
A) long-term forward contact
B) futures contract
C) currency swap
D) parallel loan

Question

A ____ is not normally used for hedging long-term transaction exposure.​
A) ​long-term forward contact
B) ​futures contract
C) ​currency swap
D) ​parallel loan

Quizplus · Accepted Answer

Futures contracts are typically used for short-term hedging due to their standardized nature and the fact that they are traded on exchanges, making them less suitable for customizing to hedge long-term transaction exposure.

A ____ Is Not Normally Used for Hedging Long-Term Transaction