Which of the following does not represent the risk from using forward contracts?
A) if a forward contract is used to hedge receivables, and the spot exchange rate at the expiration of contract exceeds the contract price.
B) if a forward contract is used to hedge receivables, and the spot exchange rate at the time of expiration of contract is lower than the contract price.
C) if a forward contract is used to hedge payables, and the spot exchange rate at the time of expiration of contract is lower than the contract price.
D) if a forward contract is used to hedge payables or receivables and the amount to be received or paid is cancelled.

Question

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The Answer of Which of the following does not represent the risk from using forward contracts?
A) if a forward contract is used to hedge receivables, and the spot exchange rate at the expiration of contract exceeds the contract price.
B) if a forward contract is used to hedge receivables, and the spot exchange rate at the time of expiration of contract is lower than the contract price.
C) if a forward contract is used to hedge payables, and the spot exchange rate at the time of expiration of contract is lower than the contract price.
D) if a forward contract is used to hedge payables or receivables and the amount to be received or paid is cancelled.

Which of the Following Does Not Represent the Risk from Using