which term describes currency derivatives to reduce potential transaction, translation and economic risks of currency movement that could lead to loses for a firm or investment? a. an exchange position b. hedging c. speculating d. a shot position g

Question

21-10-2022
Business

Answered

which term describes currency derivatives to reduce potential transaction, translation and economic risks of currency movement that could lead to loses for a firm or investment? a. an exchange position b. hedging c. speculating d. a shot position g

Answer :

Other Questions

a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is a

when planning an effective lead nurturing campaign, what is the first step that you should take as an inbound professional?

describe an activity in which you took a leadership role. how did you lead and what did you to overcome the challenges of leadership

before the sales process can begin, what must a company do first? lead generation lead qualification needs assessment overcoming objections

the contribution to economic growth from improvements in the ratio of output to total inputs is measured by which variable?

if the expenditure schedule must be shifted downward to reach potential gdp, then the economy is experiencing a(n)

if the interest rate rises, then firms' investment spending: a. remains unchanged b. falls. c. also rises. d. reacts unpredictably

this tax pays for benefits that workers and families receive for either social security or medicare.

an insureds inability to perform two or more activities of daily living may trigger which type of life policy rider?

a new employee asks you for an example of an administrative safeguard. which example would be most appropriate?

akankshasharma92 akankshasharma92 · Answer 1 · 2022-10-26T08:54:30-04:00

The correct option is b. Hedging means that currency derivatives to reduce potential transaction.

In the world of finance, to hedging is to take an opposite position in a security or investment to balance out an existing holding's price risk. Therefore, a trade undertaken with the intention of lowering the risk of unfavourable price changes in another asset is called a hedge. A hedge often entails taking the opposite viewpoint in a security that is related to or based on the asset being hedged. Because of how more or less precisely defined the connection between the two is, derivatives can be useful hedging tools against their underlying assets. Securities known as derivatives fluctuate in accordance with one or more underlying value. Options, transactions, futures, and forward agreements are some examples.

Learn more about hedging here:

https://brainly.com/question/28212917

#SPJ4