________ Is NOT a Commonly Used Contractual Hedge Against Foreign

question 63

Multiple Choice

________ is NOT a commonly used contractual hedge against foreign exchange transaction exposure.

• A) Forward market hedge
• B) Money market hedge
• C) Options market hedge
• D) All of the above are contractual hedges.

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Definitions:

Financial Decisions

Choices made by individuals or businesses regarding the management of finances, including investments, budgeting, and financial planning.

Trade-off

The act of giving up one benefit in order to gain another, often considered in decision-making processes.

CFO

Chief Financial Officer; a senior executive responsible for managing the financial actions of a company.

Costs and Expenses Forecast

An estimate of future costs and expenses that a business expects to incur over a specific period, often used for budgeting and financial planning purposes.