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Commerce · Q391

Business Finance

Graduate and Post Graduate · Commerce · question 391

Q391

The true cost of hedging transaction exposure by using forward market is

A.
difference between agreed rate and spot rate at the time of entering into contract
B.
difference between agreed rate and spot rate on the due date of contract
Answer
C.
forward premium
D.
discount annualised

Answer: Option B

Solution

Answer: Option B
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