Which hedging technique is best to use to hedge recurrent exposure?
A) Forward hedge
B) Money market hedge
C) Option hedge
D) hedging with swaps

Name: Which hedging technique is best to use to hedge recurrent exposure? A) Forward hedge B) Money market hedge C) Option hedge D) hedging with swaps
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Question

Quizplus · Accepted Answer

Swaps are often used to hedge recurrent exposure as they allow for the exchange of cash flows over a period, making them suitable for managing ongoing exposure.

Which Hedging Technique Is Best to Use to Hedge Recurrent