Exchange-Rate Risk

question 35

Multiple Choice

Exchange-rate risk

• A) results from changes in the exchange rates between the currency of the investor and the country in which the investment is made.
• B) can be hedged by using a forward or futures contract in foreign exchange.
• C) cannot be eliminated.
• D) results from changes in the exchange rates between the currency of the investor and the country in which the investment is made and cannot be eliminated.
• E) results from changes in the exchange rates between the currency of the investor and the country in which the investment is made and can be hedged by using a forward or futures contract in foreign exchange.

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