Post Utme Futa 2022 Commerce Question 5

Practice objective / multiple choice question 5 from the 2022 Post Utme Futa Commerce examination.

Post Utme Futa 2022 Commerce Objective / Multiple Choice
Question 5 POST_UTME_FUTA • 2022 • COMMERCE • objective

A firm's foreign exchange risk arises from fluctuations in the exchange rate between the naira and the US dollar. Which of the following hedging strategies is most effective in managing this risk?

Answer Options

Correct Answer A. Forward Contract
B. Futures Contract
C. Options Contract
D. Swap Contract
Correct Answer
A
Correct Option:
Forward Contract

About This Question

This is Post Utme Futa 2022 Commerce Question 5. It is one of the objective questions from the 2022 Post Utme Futa Commerce examination.

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