Managers should assess the performance of financial market hedges of operating exposures by ______.
A) assessing the interaction of operating performance with exchange rate changes
B) varying pro forma operating performance within reasonable limits
C) varying the exchange rate and assessing the resulting competitive position of the firm
D) More than one of the above
E) None of the above

Question

Quizplus · Accepted Answer

Assessing the performance of financial market hedges of operating exposures involves considering how operating performance interacts with exchange rate changes, varying pro forma operating performance within reasonable limits, and assessing the impact of exchange rate variations on the firm's competitive position. Therefore, options A, B, and C are all relevant considerations, making D the correct answer.

Managers Should Assess the Performance of Financial Market Hedges of Operating