Which of the following represents a way in which multinational corporations can protect themselves from exchange rate risks?
A)forward markets
B)futures markets
C)currency options
D)All of the above

Question

Quizplus · Accepted Answer

All of the options - forward markets, futures markets, and currency options - can be used by multinational corporations to protect themselves from exchange rate risks. The choice of which to use may depend on factors such as the specific types of risks being faced, the duration of the transaction, and the cost of the hedging instrument. Therefore, utilizing all of these options is the best way to protect against exchange rate risks.

Which of the Following Represents a Way in Which Multinational