In the context of currency risk,which of the following involves purchasing various financial instruments?

Question

Quizplus · Accepted Answer

Hedging involves purchasing various financial instruments (such as options, futures, or forwards) to reduce or eliminate the risk of currency fluctuations. Bonding refers to the process of issuing bonds to raise funds, calling refers to the redemption of a bond or security, closing could refer to closing a trade or position, and market skimming is a pricing strategy used to maximize profits.

In the Context of Currency Risk,which of the Following Involves