Question: Please select all that are true regarding hedging in the currency (FX) markets: Hedging in the FX market is similiar to arbitrage since it is
Please select all that are true regarding hedging in the currency (FX) markets:
| Hedging in the FX market is similiar to arbitrage since it is for profits | ||
| FX hedging transfers the risk from the future to the present | ||
| FX hedging can reduce the risks to profits for domestic firms that have international supply chains, either for sales (exports) or inputs (imports). | ||
| The basic idea of hedging in FX is to lock in an exchange rate for a date or time in the future | ||
| FX hedging helps mitigate risk on the return trip of an investment from a foreign currency |
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