A perfect hedge (full coverage) on translation exposure can usually be achieved when:
A. using the money market hedge.
B. using the forward hedge.
C. using the futures hedge.
D. none of the above, since a perfect hedge is nearly impossible.
Answer:B
A perfect hedge (full coverage) on translation exposure can usually be achieved when:
A. using the money market hedge. B. using the forward hedge. C. using the futures hedge. D. none of the above, since a perfect hedge is nearly impossible.