Generally speaking,a firm with recurrent exposure can best hedge using which product?
A)Options
B)Swaps
C)Futures
D)all of the options

Question

Quizplus · Accepted Answer

Swaps are best suited for hedging recurrent exposures because they allow firms to exchange cash flows or other financial instruments over a period, making them ideal for managing ongoing or repeated risk. Options and futures can also be used for hedging, but swaps are specifically designed for continuous or repeated exposures.

Generally Speaking,a Firm with Recurrent Exposure Can Best Hedge Using