Question

In: Finance

A ________ hedge refers to an offsetting operating cash flow such as a receivable arising from...

A ________ hedge refers to an offsetting operating cash flow such as a receivable arising from the conduct of business.  

A) natural

B) financial

C) contractual

D) futures

Solutions

Expert Solution

A natural hedge refers to an offsetting operating cashflow such as receivable arising from the conduct of business.

WHen a business's structure protects it from exchange rate movements natural hedge occurs.

Therefore,

Option A is the correct answer

jeff jeffy answered 2 years ago
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