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Alliantz Company, a USA-based manufacturer needs to set up a hedge to protect against dollar exchange rate devaluation. The protection is necessary (or an open balance of $2 478.450 Payment is to be settled in a rare currency 40 days from today excl

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(@velvertonernest)
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Alliantz Company, a USA-based manufacturer needs to set up a hedge to protect against dollar exchange rate devaluation. The protection is necessary (or an open balance of $2 478.450 Payment is to be settled in a rare currency 40 days from today excluding transaction fees which investment instrument would be used to provide the best hedge?

  • A . Stock options
    B. Market-traded futures
    C. Forward agreement
    D. Currency warrant

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Suggested Answer: C
 
Posted : 01/12/2022 5:42 pm

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