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0.513-0.5*50,000 = $650 the trader sells for 50 cents per pound something that is wort 51.3 cents per pound Loss= $650 A US company knows

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0.513-0.5*50,000 = $650 the trader sells for 50 cents per pound something that is wort 51.3 cents per pound Loss= $650 A US company knows it will have to pay 3 million euros in three months. The current exchange rate is 1.45 dollars per euro. Discuss how forward and options contracts can be used by the company to hedge its exposure

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