Question
Which of the following is(are) considered as justifiable risk management practices? (Select all that apply) (2 marks) A) A Forex trader ends her trading day
Which of the following is(are) considered as justifiable risk management practices? (Select all that apply) (2 marks) A) A Forex trader ends her trading day with a flat trading book. B) A U.S.-headquartered MNC relies on the expected profit from an uncovered interest arbitrage to settle a GBP-denominated bill.
C) A British company expecting USD payments takes a short position on USD forward contracts to offset potential loss when GBP appreciates against USD D) A U.S. investor incorporates carry trade into his overall investment portfolio, together with U.S. stocks and U.S. treasury bills.
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