A transaction exposure risk can be eliminated with a

Name: A transaction exposure risk can be eliminated with a
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A forward contract allows a company to lock in a specific exchange rate for a future transaction, eliminating the risk of fluctuations in exchange rates. Call and put options can help mitigate risk but do not completely eliminate it. A bank deposit in a foreign country does not necessarily eliminate transaction exposure risk.

A Transaction Exposure Risk Can Be Eliminated with a