The Most Direct and Popular Way of Hedging Transaction Exposure

question 24

Multiple Choice

The most direct and popular way of hedging transaction exposure is by

• A)exchange-traded futures options.
• B)currency forward contracts.
• C)foreign currency warrants.
• D)borrowing and lending in the domestic and foreign money markets.

---

Definitions:

Baboons

Large, terrestrial monkeys found in various parts of Africa and the Arabian Peninsula, known for their size, strength, and social behavior.

Lemurs

A group of arboreal primates native to Madagascar, characterized by their large eyes, long tails, and varied social structures.

Evolutionary Trend

A directional change or development observed in the evolutionary history of a group of organisms over time.

Snout Size Reduction

A phenomenon observed in the domestication process where animals, particularly dogs, show a decrease in snout length compared to their wild ancestors.