Discuss how each of the following can be used to hedge a forward market exposure:

(a) Derivative contracts such as

- deliverable forward contracts

- non-deliverable forward contracts

- futures contracts

- swaps

- option contracts

(b) direct borrowing and lending

(c) repurchase agreements

Hint: refer to the following reading:

Steve Allen (2013) "Financial Risk Management: A Practitioner's Guide to Managing Market and Credit Risk", John Wiley & Sons Chapter 10 Managing Forward Risk