Q40
The __________ is especially well suited to offer hedging protection against transactions risk exposure
A.
forward market
AnswerB.
spot market
C.
transactions market
D.
inflation-rate market
Answer: Option A
Solution
Answer: Option A
Solution:
The forward market is especially well suited to offer hedging protection against transactions risk exposure. A forward market is an over-the- counter marketplace that sets the price of a financial instrument or asset for future delivery.