Forward contract to hedge against exchange rate risk

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Reference no: EM131339699

What is an advantage of using a forward contract to hedge against exchange rate risk?

a. Eliminates risk but preserves the potential to profit from favorable exchange rate changes

b. Forwards are marked to market

c. Forwards can be customized to the firm’s needs

d. Forwards are exposed to counterparty risk

Reference no: EM131339699

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