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arson Company expects that it will receive a large order from the government of Spain. If the order occurs, Carson will be paid about 3 million euros. All of Carson's expenses are in dollars. Carson would like to hedge this position. Carson has contacted a bank with brokerage subsidiaries that can help it hedge with foreign exchange derivatives. How could Carson use currency futures to hedge its position and what is the risk of hedging with currency futures?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M949192

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