Question: Which of the following is consistent with using a forward hedge a transaction exposure? A) It generates extra income which can pad the hedger against

Which of the following is consistent with using a forward hedge a transaction exposure?

A) It generates extra income which can pad the hedger against minor losses

B) It allows the hedger a means to profit if he/she correctly guesses the direction of that the exchange rate will move

C) It eliminates any fluctuation in the value of the position being hedged

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