_____ refers to a transaction that protects traders and investors from exposure to the fluctuations of the spot rate.
A) Forward discount
B) Forward premium
C) Strategic hedging
D) Currency hedging

Question

Quizplus · Accepted Answer

Currency hedging refers to strategies used by traders and investors to protect themselves from the risk of fluctuations in exchange rates, typically involving financial instruments like forwards, futures, or options.

_____ Refers to a Transaction That Protects Traders and Investors