Using derivatives such as forwards,options and money markets to control currency exposure is called:
A)swapping.
B)gambling.
C)debt contracting.
D)hedging.

Question

Quizplus · Accepted Answer

Hedging is the act of using derivatives such as forwards, options, and money markets to control currency exposure. Swapping refers to exchanging one financial instrument for another, gambling is a risky activity in which an individual places a bet, and debt contracting refers to the process of borrowing or lending money.

Using Derivatives Such as Forwards,options and Money Markets to Control