Question

A ____ is not normally used for hedging long-term transaction exposure. a. long-term forward contract. b. futures contract. c. currency swap.

Answer 1

The answer to the question "A ____ is not normally used for hedging long-term transaction exposure" is c) currency swap. Long-term forward contracts and futures contracts are commonly used for hedging long-term transaction exposure, whereas currency swaps are typically used for managing interest rate and currency risks for extended periods of time.

Step-by-step explanation: