Forward contracts are the best technique for managing exposure arising from project bidding.

Question

Quizplus · Accepted Answer

Forward contracts, while useful for hedging against currency risk, are not necessarily the best technique for all types of exposure arising from project bidding, as their effectiveness depends on the nature of the exposure and the availability of matching forward contracts. Other techniques, such as options or diversification, might be more suitable depending on the specific risks involved.

Forward Contracts Are the Best Technique for Managing Exposure Arising