MNCs can use several methods to hedge transaction exposure (futures hedge, forward hedge, Money market hedge...

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Finance

MNCs can use several methods to hedge transaction exposure(futures hedge, forward hedge, Money market hedge and currencyoption hedge).
Give an example of how a particular company hedges thetranslation exposure (mention which one(s) of these techniques

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A hedging transaction is a position that a market participant takes in order to limit risks related to another position or transaction that the market participant is involved in FUTURE HEDGE A futures contract is an arrangement between two parties to buy or sell an asset at a particular time in the future for a particular price The main reason that companies or corporations use future contracts is to offset their risk exposures and limit themselves from any fluctuations in priceThis may not be possible every time But parties to such a contract attempt to minimise their See Answer

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MNCs can use several methods to hedge transaction exposure (futures hedge, forward hedge, Money market hedge...

50.1K

Verified Solution

Question

Finance

MNCs can use several methods to hedge transaction exposure(futures hedge, forward hedge, Money market hedge and currencyoption hedge).
Give an example of how a particular company hedges thetranslation exposure (mention which one(s) of these techniques

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MNCs can use several methods to hedge transaction exposure (futures hedge, forward hedge, Money market hedge...

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Finance

MNCs can use several methods to hedge transaction exposure(futures hedge, forward hedge, Money market hedge and currencyoption hedge).Give an example of how a particular company hedges thetranslation exposure (mention which one(s) of these techniques

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MNCs can use several methods to hedge transaction exposure(futures hedge, forward hedge, Money market hedge and currencyoption hedge).
Give an example of how a particular company hedges thetranslation exposure (mention which one(s) of these techniques