ACI
3I0-012 · Question #694
If you sell USD 3-month forward to a client against EUR, what should you do to hedge your position?
The correct answer is D. Any of the above. See the full explanation below for the reasoning.
Question
If you sell USD 3-month forward to a client against EUR, what should you do to hedge your position?
Options
- ABuy USD spot, and buy and sell a 3-month EUR/USD FX swap
- BSell EUR/USD in the spot market, borrow EUR for 3 months and lend USD for 3 months
- CSell a 3-month EUR/USD outright forward
- DAny of the above
How the community answered
(21 responses)- A14% (3)
- B10% (2)
- C5% (1)
- D71% (15)
Community Discussion
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