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The short in a currency forward most likely:?

A. gains when foreign currency appreciates.

B. hedges the risk of rise in value of foreign currency..

C. hedges the risk of change in value of foreign currency.

Project Finance Cash Flow Forecasting Financial Systems Feasibility Studies Economics
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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/07/09
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Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option B is the right answer.

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

C-----------------------------------------------

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