Exchange rate risk hedging tools include Monte Carlo swaps, synthetic insurance contracts, and inventory swaps.

Name: Exchange rate risk hedging tools include Monte Carlo swaps, synthetic insurance contracts, and inventory swaps.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Monte Carlo swaps are not a common hedging tool for exchange rate risk. Instead, common hedging tools include forward contracts, options, and currency swaps. Synthetic insurance contracts and inventory swaps are also not typically used for exchange rate risk hedging.

Exchange Rate Risk Hedging Tools Include Monte Carlo Swaps, Synthetic