question archive Borrow the currency denominating the receivables, convert it to the local currency and invest it
Subject:FinancePrice: Bought3
Borrow the currency denominating the receivables, convert it to the local currency and invest it. Then pay off the loan with cash inflows from the receivables. This technique for hedging transaction exposure is called: Select one: a. money market hedge b. futures hedge c. forward hedge d. currency options hedge e. None of these