Economics · Foreign Exchange Market
Under the Indian financial regulatory framework, if an exporter receives payment in US Dollars and wishes to lock in the exchange rate for a transaction occurring three months in the future to mitigate currency risk, which derivative instrument should be utilized, and under which Act?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Futures Contract under the Negotiable Instruments Act
- 2Interest Rate Swap under the Companies Act
- 3Forward Contract under the Foreign Exchange Management Act✓
- 4Currency Option under the Banking Regulation Act
Correct answer
Forward Contract under the Foreign Exchange Management Act
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