Question: 1. Triangular arbitrage. 2. Covered interest arbitrage. 3. The measurement of forecast error. 4. Transaction exposure: Value at Risk (VaR) method. 5. Commonly used techniques

1. Triangular arbitrage.

2. Covered interest arbitrage.

3. The measurement of forecast error.

4. Transaction exposure: Value at Risk (VaR) method.

5. Commonly used techniques to hedge payables and receivables, including forward/futures hedge, money market hedge, and option hedge.

6. The use of forward contracts to hedge translation exposure

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