Which of the following is not an instrument used by U.S.-based MNCs to cover their foreign currency positions?
A) forward contracts
B) futures contracts
C) non-deliverable forward contracts
D) options
E) All of these are instruments used to cover foreign currency positions.

Question

Quizplus · Accepted Answer

All of the listed instruments (forward contracts, futures contracts, non-deliverable forward contracts, and options) are commonly used by U.S.-based MNCs to cover their foreign currency positions. None of them are excluded as an option.

Which of the Following Is Not an Instrument Used by U.S.-Based