Strategies to counter exchange rate risk include all of the following EXCEPT

Name: Strategies to counter exchange rate risk include all of the following EXCEPT
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Question

Quizplus · Accepted Answer

Spot-market hedges are not a strategy to counter exchange rate risk. Spot transactions involve immediate exchange of currencies, which does not protect against future exchange rate fluctuations. Futures, forward-market, and money-market hedges are all strategies designed to mitigate or manage exposure to changes in exchange rates.

Strategies to Counter Exchange Rate Risk Include All of the Following