Transaction exposure refers to the risk a company faces due to fluctuations in exchange rates between the time a transaction is initiated and the time it is settled. In international business finance, firms engage in cross-border trade where receivables and payables are denominated in foreign currencies. Any adverse change in the exchange rate between the domestic currency and the foreign currency during this period can result in a gain or loss. For example, if an Indian exporter sells goods to a US buyer and agrees to receive payment in US dollars after three months, depreciation of the dollar against the rupee during that period will reduce the exporter’s realized revenue in rupee terms. Therefore, managing transaction exposure is crucial for maintaining profitability and financial stability in global operations. There are several techniques available to manage transaction exposure, categorized into short-term and long-term methods. Short-term techniques focus on immediate or near-term transactions, while long-term techniques deal with strategies that reduce exposure over an extended period. In the short