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Problem:

A US company knows it will have to pay 3 million Euros in three months. The current exchange rate is 1.4500 dollars per euro.

Required:

Question: Discuss how forward and options contracts can be used by the company to hedge its exposure.

Note: Please show how you came up with the solution.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91162909

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