Which of the Following Is Not an Operational Hedge

question 5

Multiple Choice

Which of the following is not an operational hedge?

• A) Invoice currency selection
• B) Lead/lag strategy
• C) Exposure netting
• D) Money market hedge

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Definitions:

Consequential Damages

Losses that do not flow directly from an act but only from some of the consequences or results of such act.

Breach of Warranty

A violation of the promises or guarantees made about the quality, condition, or performance of a product or service.

Seek Cover

The act of attempting to find a substitute transaction or solution, typically in the context of a failed contract or transaction.

Breach of Contract

The violation of any of the agreed-upon terms and conditions in a binding contract.