Question
General Mills exports cheerios to Argentina. As General Mill's cheerio revenues are in Argentine pesos and its costs are US Dollar, General Mills is concerned
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General Mills exports cheerios to Argentina. As General Mill's cheerio revenues are in Argentine pesos and its costs are US Dollar, General Mills is concerned about flucutaions in the Peso-US Dollar exchange rate. To hedge this exposure General Mill's finances its Argentine operation by borrowing in Argentinean pesos. This type of hedging is known as,
A. Operational Hedging
B. Transaction Hedging
C. Financial Hedging
D. None of the above
E. Financial Exposure Hedging
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Financial Management Principles And Applications
Authors: Sheridan Titman
9th Edition
0655705457, 9780655705451
