A U.S.firm involved in foreign exports is most apt to highly engage in:
A)inverse floaters.
B)super floaters.
C)Treasury futures.
D)currency swaps.
E)interest rate swaps.

Question

Quizplus · Accepted Answer

A U.S. firm involved in foreign exports is likely to engage in currency swaps to manage foreign currency risk. Currency swaps involve exchanging one currency for another with another party for a set period of time. This helps mitigate the risk of fluctuating exchange rates when dealing with foreign currencies.

A USFirm Involved in Foreign Exports Is Most Apt to Highly