Multinational Corporations Most Often Hedge Their Transaction Exchange Rate Risk

question 24

Multiple Choice

Multinational corporations most often hedge their transaction exchange rate risk using currency ________.

• A) options
• B) futures
• C) spreads
• D) forward contracts

---

Definitions:

Profit Maximization

The process by which a company adjusts its production and sales strategies to achieve the highest possible profit.

Stakeholders

Individuals or groups that have an interest or stake in the outcome of a project, decision, or organization, including customers, employees, investors, and suppliers.

Shareholders

Individuals or entities that own shares in a company and have potential voting rights and a claim on part of its assets and earnings.

Stakeholders

Individuals or groups affected by or having an interest in the operations or policies of a business or entity.