When a Perfect Hedge Is Not Available to Eliminate Transaction

question 26

Multiple Choice

When a perfect hedge is not available to eliminate transaction exposure, the firm may consider methods to at least reduce exposure, such as ____.

• A)leading
• B)lagging
• C)cross-hedging
• D)currency diversification
• E)all of the above

---

Definitions:

Epinephrine

A hormone also known as adrenaline that is secreted by the adrenal glands and increases heart rate, muscle strength, blood pressure, and sugar metabolism.

Norepinephrine

A neurotransmitter involved in arousal and the stress response, also acting as a hormone.

Mood Contagion

The phenomenon where an individual's mood or emotional state is transferred to others, influencing their feelings and behaviors.

Facial Feedback

The hypothesis that facial movements can influence emotional experience.