All of the Following Are Market-Based Hedging Techniques for FX,except

question 52

Multiple Choice

All of the following are market-based hedging techniques for FX,except:

• A) futures contracts.
• B) options on foreign currency.
• C) forward exchange contracts.
• D) currency swaps.

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Definitions:

Intra-Entity Asset Transfers

Movements of assets from one part of a business to another within the same corporation, often for accounting or strategic purposes.

Useful Life

The estimated period over which an asset is expected to be usable for its intended purpose, with normal maintenance.

Intra-Entity Transactions

Transactions that occur between entities within the same parent company, which may need to be eliminated in consolidated financial statements.

Straight-Line Deprecation

A method of calculating the depreciation of an asset, where the cost is evenly spread over its useful life.