n NISM Certifications
XIII NISM Series XIII
Medium

A multinational company earns revenue in JPY and uses part of it to pay for imports in USD, converting the rest to INR. The company wants to hedge against JPYUSD risk. What is the correct hedging strategy?

Practice question from NISM Series XIII for SIF - Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    USD appreciating against JPY, short USDINR & long JPYINR

  2. USD appreciating against JPY, short JPYINR & long USDINR

    Correct answer

  3. C

    USD depreciating against JPY, short JPYINR & long USDINR

  4. D

    USD depreciating against JPY, short USDINR & long JPYINR

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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