Strategies used to hedge against the foreign exchange between the currencies of different countries and the commodity prices' volatility. Assess how derivatives can be used in such a situation and what the cost impact on the profitability of any company.

Answer rating: 100% (QA)

Hedging against foreign exchange risk and commodity price volatility is a common practice for companies engaged in international trade or exposed to fluctuations in commodity prices Derivatives are fi... View the full answer