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QUESTION 6 General Mills exports cheerios to Argentina. As General Mill's cheerio revenues are in Argentine pesos and its costs are US Dollar, General Mills
QUESTION 6 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, O A. Operational Hedging B. Financial Exposure Hedging C. Transaction Hedging D. None of the above O E. Financial Hedging QUESTION 6 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, O A. Operational Hedging B. Financial Exposure Hedging C. Transaction Hedging D. None of the above O E. Financial Hedging
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