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 the above are instruments used to cover foreign currency positions.

Question

Quizplus · Accepted Answer

All of the options listed (forward contracts, futures contracts, non-deliverable forward contracts, and options) are instruments used by U.S.-based MNCs to cover their foreign currency positions.

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