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Assume that you have decided to hedge future payables that are coming from your Myanmar to...

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Finance

Assume that you have decided to hedge future payables that arecoming from your Myanmar to a US MNC. How wouldthe US MNC hedge these payables? Please go through the specificsteps required to hedge for 1 million dollars of payables.Please use numbers. There is morethan one way to hedge. You only need to choose one to go through,however, I would like you to describe the other methods.

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What is hedging Sol Hedging in very simple word is mitigating the risk involved in any financial transaction US company is lets suppose making a purchase of an item let it be cloths from myanmar worth 1 million dollar It must take a long position in the future contract to hedge this deal Long Position Long position is nothing but just buying financial    See Answer
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Assume that you have decided to hedge future payables that arecoming from your Myanmar to a US MNC. How wouldthe US MNC hedge these payables? Please go through the specificsteps required to hedge for 1 million dollars of payables.Please use numbers. There is morethan one way to hedge. You only need to choose one to go through,however, I would like you to describe the other methods.

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