A company bought a product in a foreign currency and did hedge this transaction with a forward
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Question:
A company bought a product in a foreign currency and did hedge this transaction with a forward contract. That transaction matures tomorrow. The company just found out that the delivery will only be done in one month and therefore wants its foreign exchange contract to be extended for such period. What will the company do?
a. Do a Swap transaction
b. Take another forward contract
c. Take a Future contract on foreign exchange
d. Take an Option on the actual forward contract
Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
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