ACI
3I0-012 · Question #337
If you sell forward USD to a client against EUR, what is the first thing you should do to cover your exposure to exchange rate movements?
The correct answer is C. Buy USD in the spot market. See the full explanation below for the reasoning.
Question
If you sell forward USD to a client against EUR, what is the first thing you should do to cover your exposure to exchange rate movements?
Options
- ASell and buy USD in the FX swap market
- BSell USD in the spot market
- CBuy USD in the spot market
- DBuy and sell USD in the FX swap market
How the community answered
(35 responses)- A3% (1)
- B9% (3)
- C74% (26)
- D14% (5)
Community Discussion
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