Which of the following describe ways that a business manages foreign exposure?
I.Hedge in the futures market
II.Hedge in the options market
III.Slow payments of currencies expected to appreciate
IV.Slow collections of currencies expected to depreciate
A) I only
B) I and II
C) III and IV
D) II, III, and IV

Question

Quizplus · Accepted Answer

Hedging in the futures and options markets are common ways for businesses to manage foreign exposure by protecting themselves against adverse currency movements. Slowing payments or collections based on expected currency fluctuations is a passive strategy and may not always be feasible or effective. Therefore, option C is not a suitable choice.

Which of the Following Describe Ways That a Business Manages