Q: 1
JKL makes large export sales to customers in country X, whose currency fluctuates significantly
against JKL's home currency JKL also makes large purchases from suppliers in countrrOC All of these
transactions are in country X's currency
JKL's treasurer does not actively hedge currency risks because there is a natural hedge in place due to
the company making both sales and purchases in the same currency
JKL's board has instructed the treasurer to put active hedging measures in place because the risk
report would otherwise have to disclose the fact that JKL has a currency risk which is not actively
hedged
Which of the following statements are correct? Select ALL that apply.
Options
Discussion
No comments yet. Be the first to comment.
Be respectful. No spam.
