The external method of hedging transaction exposure does not include
A. Forward contact hedge
B. Money market hedge
C. Cross hedging
D. Future hedging
Answer: Option C
Solution(By Examveda Team)
The external method of hedging transaction exposure does not include Cross hedging. A cross hedge is used to manage risk by investing in two positively correlated securities that have similar price movements. The investor takes opposing positions in each investment in an attempt to reduce the risk of holding just one of the securities.This Question Belongs to Management >> International Finance And Treasury
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