Futures Market Hedge – NBC Institute

FM – May 2021 – L2 – Q5c – Foreign exchange risk and currency risk management

Explain three advantages of using a forward market hedge compared to a futures market hedge for managing currency risk exposure.

Question

c) Explain TWO (2) advantages to a company dealing with a currency risk exposure using a forward market hedge as against a futures market hedge. (5 marks)

Answer

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Tags: Currency risk, Forward market hedge, Futures Market Hedge, Risk Management
Level: Level 2

Topic: Foreign exchange risk and currency risk management
Series: MAY 2021

Question Tag: Futures Market Hedge

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FM – May 2021 – L2 – Q5c – Foreign exchange risk and currency risk management

Explain three advantages of using a forward market hedge compared to a futures market hedge for managing currency risk exposure.

FM – May 2021 – L2 – Q5c – Foreign exchange risk and currency risk management

Explain three advantages of using a forward market hedge compared to a futures market hedge for managing currency risk exposure.

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Question Tag: Futures Market Hedge

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FM – May 2021 – L2 – Q5c – Foreign exchange risk and currency risk management

Explain three advantages of using a forward market hedge compared to a futures market hedge for managing currency risk exposure.

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FM – May 2021 – L2 – Q5c – Foreign exchange risk and currency risk management

Explain three advantages of using a forward market hedge compared to a futures market hedge for managing currency risk exposure.

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