Accounting Questions:
International Accounting focuses on foreign currency and hedging. Why might a company prefer a foreign currency option rather than a forward contract in hedging a foreign currency firm commitment? Why might a company prefer a forward contract over an option in hedging a foreign currency asset or liability? How could this create a problem for a U.S. company where you may be employed?
Accounting Answers:
Required: Half to One page only with at lease 2 references.