Which of the Following Actions Could a Company Use to Hedge

question 48

Multiple Choice

Which of the following actions could a company use to hedge balance sheet exposure?

• A)forward contract on foreign currency
• B)foreign currency option
• C)foreign currency borrowing
• D)All of the above may be used to hedge balance sheet exposure.

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Definitions:

Purchase Agreement

A legal document outlining the terms and conditions under which a sale of property will take place.

Parcel

A parcel refers to a package or piece of land, especially one that is part of a larger area or to be used for a specific purpose.

Vendor

An individual or company offering goods or services for sale.

Encroachments

Unauthorized intrusion or extension of a building, structure, or other improvement onto another's property.