Hedging is a strategy adopted by multinational corporations to neutralize their exposure to fluctuating currency exchange rates.

Question

Quizplus · Accepted Answer

Hedging is indeed a strategy adopted by multinational corporations to protect themselves from the impact of fluctuating currency exchange rates. This is usually accomplished by engaging in financial transactions such as forward contracts, options, or futures contracts, which help mitigate the risks associated with currency fluctuations.

Hedging Is a Strategy Adopted by Multinational Corporations to Neutralize