Differences between hedging and forward contracts


Problem 1: What factors contribute to the fluctuation of exchange rates? Discuss. What is the best way for a multinational corporation to hedge against foreign currency risk?

Problem 2: What are some differences between hedging and forward contracts?

Problem 3: What is an example of a recent merger or acquisition in the service industry or western geographic market? How was value created by the combination of the two firms?

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Finance Basics: Differences between hedging and forward contracts
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