Business

Question

If you have a long position in a foreign currency, you can hedge with:_____.
a. a short position in a currency forward contract.
b. a short position in an exchange-traded futures option.
c. borrowing (not lending) in the domestic and foreign money markets.
d. a short position in foreign currency warrants.

1 Answer

  • In forex trading When someone is holding a long position in a foreign currency, then the person can hedge with a short position in a currency forward contract.

    What do we mean by long position in a foreign currency?

    Long can be explained as when someone buy with the expectation that the purchase will rise in term of value in the future.

    At a long on a currency, one is try to bet the base currency, that it will strengthen compared with the quote currency.

    Learn more about foreign currency here;

    https://brainly.com/question/11160294

NEWS TODAY