Scenario: Trader's Paradise Trader's Paradise is a global merchant that sells a variety of products. The company operates in forty-eight different countries (some developed, some developing) and some former communist countries. The company faces substantial risks given the differing conditions in foreign exchange markets. If Trader's Paradise purchases and sells the euros simultaneously in different markets for profit, it would be engaging in currency ________.
Explanation: currency hedging explains the act of entering into a financial contract in order to protect against unexpected, expected or anticipated changes in currency exchange rates.
