The three main categories of foreign exchange risk a company faces are ________. a. Economic risk, business
Question:
The three main categories of foreign exchange risk a company faces are ________.
a. Economic risk, business risk, and exposure risk
b. Exposure risk, fluctuation risk, and forward risk
c. Transaction risk, translation risk, and economic risk
d. Appreciation risk, depreciation risk, and duplication risk
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The correct answer is c Transaction risk translation risk and economic risk A company faces th...View the full answer
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A forward exchange contract (FEC) is an agreement between two parties to effect a currency transaction, usually involving a currency pair not readily accessible on forex markets. FECs are traded OTC with customizable terms and conditions, many times referencing currencies that are illiquid, blocked, or inconvertibl
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