Which of the following might be used to hedge exposure in the long run?
A)long-term forward contract
B)money market hedge
C)parallel loan
D)A and C

Question

Which of the following might be used to hedge exposure in the long run?​
A)long-term forward contract
B)money market hedge
C)parallel loan
D)A and C

Quizplus · Accepted Answer

Long-term forward contracts and parallel loans are both financial instruments that can be used to hedge exposure in the long run. Long-term forward contracts allow parties to lock in exchange rates or prices for transactions that will occur in the future, thus hedging against price or currency fluctuations. Parallel loans involve two parties in different countries lending to each other in their respective currencies, also serving as a hedge against currency risk over longer periods.

Which of the Following Might Be Used to Hedge Exposure