Why might a large multinational corporation like Coca-Cola engage in foreign currency transactions, such as setting up forward contracts (a forward contract locks in the exchange rate now so that some transaction in the future can occur at a pre-specified exchange rate), even if they know that the contract itself will lose money? (There will be transaction costs in setting up the contract, and the counterparty to the contract will only accept the contract if they think that they'll profit off of the contract.)

Question 8 options:

People who work in corporate finance don't know what they're doing

It's worth taking a smaller loss of a predictable size in order to guarantee that they are not subject to large swings of foreign exchange rates in the future

Corporations are wild gamblers who like throwing away money

Corporations like to be subject to political risk