Question: Consider the following methods that could be resorted to for hedging foreign exchange exposure: 1 . International diversification of operations; 2 . Interest rate futures

Consider the following methods that could be resorted to for hedging foreign exchange exposure: 1.International diversification of operations; 2.Interest rate futures contracts; 3.Leading and lagging; 4.Forward exchange contracts. Which TWO of the options provided can be used to hedge economic exposure?
*
1 and 2
1 and 3
2 and 4
1 only

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