Measurement of Transaction Exposure Foreign exchange transaction exposure can be managed by contractual,operating,and financial hedges. The main contractual hedges employ the forward, money,futures,and options markets. Operating and financial hedges employ the use of risk-sharing agreements,leads and lags in payment terms,swaps,and other strategies.Measurement of Transaction Exposure Foreign exchange transaction exposure can be managed by contractual, operating, and financial hedges. The main contractual hedges employ the forward, money, futures, and options markets. Operating and financial hedges employ the use of risk-sharing agreements, leads and lags in payment terms, swaps, and other strategies