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A Way in Which a Foreign Currency Transaction Can Be

Question 16

Multiple Choice

A way in which a foreign currency transaction can be hedged is:


A) Buy (or sell) foreign currency at the date of the initial transaction
B) Enter into a forward rate agreement to fix the cost of the currency at a fixed date in the future
C) Enter into a transaction which neutralises the risk (e.g., have accounts receivable and accounts payable in the same currency with the same payment dates)
D) All of the above

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