Purchasing currency options at a fixed exchange rate for a period of time in the hopes of guarding against fluctuations is called:

Question

Quizplus · Accepted Answer

This is because hedging involves purchasing currency options at a fixed exchange rate for a period of time in order to guard against fluctuations in exchange rates. Natural selection refers to the process by which species evolve over time through genetic mutations and adaptations. Currency insurance and exchange rate risk are not commonly used terms in the context of currency trading. Forwarding could refer to the process of forwarding goods or services, but it is not relevant to this question.

Purchasing Currency Options at a Fixed Exchange Rate for a Period