CIMA Fundamentals of Business Economics BA1 Question # 117 Topic 12 Discussion

CIMA Fundamentals of Business Economics BA1 Question # 117 Topic 12 Discussion

BA1 Exam Topic 12 Question 117 Discussion:
Question #: 117
Topic #: 12

A business has a contractual requirement to pay a sum of$6m in a foreign currency in 12 months time. It takes out a forward exchange contract from this sum.


A.

This is an example of


B.

Translation risk avoidance


C.

Arbitrage


D.

hedging


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