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.
To insure against potential losses that result from adverse changes in exchange rates, Trader's Paradise should use currency
A. Swap
B. speculation
C. hedging
D. arbitrage
If Trader's Paradise purchases and sells the euros simultaneously in different markets for profit, it would be engaging in currency
A. Swap
B. speculation
C. hedging
D. arbitrage