Hedging foreign currency transactions can be accomplished by:
A)maintaining equal amounts of receivables and payables in foreign currencies.
B)purchasing future contracts.
C)purchase foreign currencies to be received in the future.
D)all of the above.

Question

Quizplus · Accepted Answer

Hedging foreign currency transactions can be achieved through various methods, including maintaining equal amounts of receivables and payables in foreign currencies, purchasing futures contracts, and buying foreign currencies to be received in the future. All these methods help manage the risk associated with currency fluctuations.

Hedging Foreign Currency Transactions Can Be Accomplished By