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You are holding $20m in stocks in 20 large companies . You predict that the Dollar is likely to fall over the next 6 months because of the monetary policy statements of the Federal bank.

You need a currency strategy that will be beneficial if your prediction is correct but will not lead to large losses if you are incorrect. Discuss the merits of using either an option or a futures contract to achieve your aims.

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  • Category:- Basic Finance
  • Reference No.:- M940482

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