In what ways is the foreign exchange market affected
Question: In what ways is the foreign exchange market affected when European nations adopt the Euro Dollar as currency? For what reasons might a country not accept the Euro as currency?
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1. Assess the potential risk, 2. Construct hedge using options, and 3. Construct a hedge using currency exchange forward contracts.
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In what ways is the foreign exchange market affected when European nations adopt the Euro Dollar as currency?
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