n NISM Certifications
XIII NISM Series XIII
Medium

Which hedging strategy is most suitable for M/s Auto Exports, receiving USD monthly and repaying USD loans?

Practice question from NISM Series XIII for SIF - Mock Test 9 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Hedge exports and leave loan payments unhedged

  2. B

    Hedge loan repayments and leave exports unhedged

  3. Hedge part of exports over and above loan dues

    Correct answer

  4. D

    Hedge part of loan dues over and above exports

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

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