Which of the Following FX Trading Activities Is Used to Hedge

question 18

Multiple Choice

Which of the following FX trading activities is used to hedge FX risk?

• A)The purchase and sale of foreign currencies for the purpose of profiting from forecasting or anticipating future movements in FX rates.
• B)The purchase and sale of foreign currencies to allow customers to partake in and complete international commercial trade transactions.
• C)The purchase and sale of foreign currencies for the purpose of offsetting customer exposure in any given currency.
• D)The purchase and sale of foreign currencies to allow customers to take positions in foreign real and financial investments.
• E)None of the above.

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Definitions:

Myocardial Infarction

Commonly known as a heart attack, it occurs when blood flow to a part of the heart is blocked for a long enough time that part of the heart muscle is damaged or dies.

Left Coronary Artery (LCA)

A critical artery that supplies blood to the left side of the heart, including the left ventricle and left atrium.

Anterior Interventricular Branch

An artery that supplies blood to the front of the ventricles of the heart, often referred to as the left anterior descending artery (LAD).

Circumflex Branch

A branch of the coronary artery that supplies blood to the lateral and posterior surfaces of the left atrium and left ventricle of the heart.