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:

Critical Analysis

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The systematic investigation into and study of materials, sources, etc., in order to establish facts and reach new conclusions.

Market Test

An experiment or survey conducted to gauge the potential success of a product or service in the marketplace.

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