What is an advantage of using a forward contract to hedge, Ask an Expert

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What is an advantage of using a forward contract to hedge against exchange rate risk?

a. Eliminates risk but preserves the potential to profit from favorable exchange rate changes

b. Forwards are marked to market

c. Forwards can be customized to the firm’s needs

d. Forwards are exposed to counterparty risk

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Financial Management, Finance

Category:- Financial Management
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