Operating exposure to currency risk is most effectively managed by ______.
A) hedging with currency forwards or futures
B) hedging with currency options
C) hedging with real assets
D) hedging with virtual assets
E) None of the above

Question

Quizplus · Accepted Answer

Operating exposure to currency risk is most effectively managed by hedging with real assets, such as by diversifying operations and sourcing across different countries to naturally hedge against currency fluctuations. This approach can provide a more fundamental and long-term solution to currency risk compared to financial instruments.

Operating Exposure to Currency Risk Is Most Effectively Managed by ______