Currency Exchange Rate Risk Can Be Hedged Using Forwards, Futures

question 14

True/False

Currency exchange rate risk can be hedged using forwards, futures and options.

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Definitions:

Probability Range

The spread between values within which a random variable is expected to fall with a certain probability.

Returns

The profit or loss derived from an investment over a specified period, often expressed as a percentage.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.