Which of the Following Is a Non-Derivative Hedging Instrument

question 53

Multiple Choice

Which of the following is a non-derivative hedging instrument?

• A) Forward contract on foreign currency
• B) Foreign currency call option
• C) Foreign currency borrowing
• D) Foreign currency put option

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Definitions:

Sickle Cell Anemia

A genetic blood disorder characterized by red blood cells that assume an abnormal, rigid, sickle shape, leading to various complications.

Saphenous

Relating to the longest vein in the body, which runs along the length of the leg.

Femoral

Pertaining to the femur or thigh bone.

Tibial

Relating to the tibia, which is the more substantial and robust of the pair of bones found in the lower leg.