题目中讲的为啥不是对冲汇率风险呢？

问题如下：

QuestionThe German firm IHK AG has entered into a three-month forward currency contract to purchase USD35 million versus euros from US firm GED Corp. to hedge a future payment obligation. The US dollar appreciates 5% in the coming three months. IHK should most likely focus on:

选项：

A.market risk.

B.liquidity risk.

C.counterparty risk.

解释：

Solution

C is correct. IHK’s potential risk is settlement risk, which is a type of counterparty risk. Settlement risk deals with the settling of payments that occur just before a default. If IHK wires the euros to GED and GED then declares bankruptcy, IHK will not be able to get the money back.

A is incorrect. IHK would not face market risk since the forward contract would have become more valuable during the three months.

B is incorrect. Liquidity risk is the risk of a significant downward valuation adjustment when selling a financial asset and is not applicable for a contract for which the price was fixed when the contract was initiated.