The forward market is especially well-suited to offer hedging protection against:

1. translation risk exposure.

2. transactions risk exposure.

3. political risk exposure.

4. taxation.

Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/06/11

Upvote (2) Views (4) Followers (4) Answers (3) Report Question

by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes Option2 is the right answer.

by Shazia Anees , Assistant Manager Finance , Arham Trading Company

2. transactions risk exposure.

Upvote (1)

by Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

I do believe that the right answer is (2) i.e. Transaction Risk Exposoure.

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