Which one of the following is not an advantage of money market hedging ?
Being simpler to manage than a forward contract is not an advantage of money market hedging. A money market hedge involves borrowing, currency conversion and investment,…
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Which one of the following is not an advantage of money market hedging ?
Answer and explanation
Correct answer D
Being simpler to manage than a forward contract is not an advantage of money market hedging. A money market hedge involves borrowing, currency conversion and investment, whereas a forward contract directly fixes the exchange terms for a future date.
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Madhya Pradesh SET (MP SET)