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The external method of hedging transaction exposure does not include

The external method of hedging transaction exposure does not include Correct Answer Cross hedging

The external method of hedging transaction exposure does not include Cross hedging. A cross hedge is used to manage risk by investing in two positively correlated securities that have similar price movements. The investor takes opposing positions in each investment in an attempt to reduce the risk of holding just one of the securities.

Related Questions

Which of the following statements are true?  a) Transaction exposure is inherent in all foreign currencies denominated contractual transactions  b) Translation exposure relates to the change in accounting income and balance sheet statements caused by change in exchange rate  c) Economic exposure has an impact on the valuation of a firm  d) Operating exposure does not have any impact on the firm's future operating revenues or future operating costs  Choose the correct option from those below: 
With reference to the 'Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)', consider the following statements: 1. A property transaction is not treated as a Benami transaction if the owner of the property is not aware of the transaction. 2. Properties held Benami are liable for confiscation by the Government. 3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism. Which of the statements given above is/are correct?
The __________ is especially well suited to offer hedging protection against transactions risk exposure
In a database system, unique timestamps are assigned to each transaction using Lamport’s logical clock. Let TS(T1) and TS(T2) be the timestamps of transactions T1 and T2 respectively. Besides, T1 holds a lock on the resource R, and T2 has requested a conflicting lock on the same resource R. The following algorithm is used to prevent deadlocks in the database system assuming that a killed transaction is restarted with the same timestamp. If TS(T2) < TS(T1) then T1 is killed else T2 waits. Assume any transaction that is not killed terminates eventually. Which of the following is TRUE about the database system that uses the above algorithm to prevent deadlocks?
The state of the data accessed by an aborted transaction must be restored to what it was just before the transaction started executing. This restoration is known as ________ of transaction.
A witness may refresh his memory by referring to any writing made by:
1. Him at the time of the transaction.
2. Him soon afterwards that the court considers the transaction fresh in his memory.
3. Any person
4. Any other person present at the time of transaction.
Select the correct answer:
Which of the following are methods of calculating goodwill?
1. Average profit method
2. Super profit method
3. Log method
4. Sum of years digit method
5. Capitalisation of average profit method
6. Capitalisation of super profit method
7. FIFO method
Select the correct answer:
Respiratory disease is a symptom of exposure to nitrogen dioxide. What concentration and period of exposure does one need to have for it to manifest?
Pulmonary edema is an effect of exposure to nitrogen dioxide. After how much exposure does this condition show?
P, Q, R, S, T and U are six persons who have different mobiles - Nokia, Vivo, Oppo, Samsung, Apple and Jio (but not necessarily in the same order). P does not have Apple mobile. U does not have Oppo nor Vivo mobile. T has a Nokia mobile. R does not have Oppo nor Apple mobile. Q does not have Samsung nor Oppo mobile. P does not have Oppo nor Jio mobile. U does not have Jio nor Apple mobile. Which of the following combinations is correct?