1. What factors affect a firm's degree of transaction exposure in a particular currency? For each factor, explain the desirable characteristics that would reduce transaction exposure.
2. Explain how a U.S. corporation could hedge net receivables in Malaysian ringgit with a forward contract. Use APA 6th edition format with at least 3 cited references.
Organize the two questions into a single paper with two sections and a single References page. Demonstrate your mastery of these topics through examples including "the numbers" and formulas as appropriate.