The forward market is especially well-suited to offer hedging protection against.
A. translation risk exposure
B. transactions risk exposure
C. political risk exposure
D. taxation
Answer: Option B
Solution(By Examveda Team)
The forward market is especially well-suited to offer hedging protection against transactions risk exposure. Transaction exposure, defined as a type of foreign exchange risk faced by companies that engage in international trade, exists in any worldwide market. It is the risk that exchange rate fluctuations will change the value of a contract before it is settled.This Question Belongs to Management >> International Finance And Treasury
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