Which of the following is not an operational hedge?
A) Invoice currency selection
B) Lead/lag strategy
C) Exposure netting
D) Money market hedge

Question

Quizplus · Accepted Answer

A money market hedge is a financial hedge that involves taking offsetting positions in the money markets to protect against exchange rate risk. It is not an operational hedge, as it does not involve changes in operational processes or strategies. Options A, B, and C are all examples of operational hedges, as they involve making changes to the company's operations or practices to reduce exposure to currency risk.

Which of the Following Is Not an Operational Hedge