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HEDGING TECHNIQUES

There are four different commonly used financial hedging techniques and some operational hedging techniques that firms use to manage currency risk.

WRITE A literature review, critically evaluate all these hedging techniques. Illustrate your arguments with appropriate examples / cases / empirical studies review on large firms or small firms, or comparison) please try as much as you can to meet the following criteria: Compare the financial products available on international markets. Devise and apply appropriate strategies using derivatives to manage currency risk. Critically evaluate the use of derivative instruments to manage currency risk.

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