How can a firm hedge long term currency positions
If interest rate parity exists, would a forward hedge be more favorable, the same as, or less favorable than a money market hedge on euro payables? Explain. How can a firm hedge long term currency positions? Elaborate on each method.
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Favorable than a money market hedge on euro payables? Explain. How can a firm hedge long term currency positions? Elaborate on each method.
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When would a U.S. firm consider purchasing a call option on euros for hedging? When would a U.S. firm consider purchasing a put option on euros for hedging?
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