Hedging transaction is indicated by ........

Economics- Phase (I & II) Balance of Payment and Foreign Exchange Markets

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Hedging transaction is indicated by

Transactions in odd amounts

Presentation of documentary support.

Frequency of such transactions.

None of the above??

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Explanation:

An investment-based hedging transaction can use derivatives, such as put options, futures, or forward contracts. These derivatives function very similarly to the dynamics of an insurance policy. Those who purchase a derivative for the purpose of hedging pay a premium