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1. Briefly explain how a farmer can hedge the price risk of agricultural products using a derivative. 2. Suppose you want to import 20 Mercedes

1. Briefly explain how a farmer can hedge the price risk of agricultural products using a derivative.

2. Suppose you want to import 20 Mercedes and supercars, but by the time the imported cars are delivered to you, the value of the Euro is expected to go up against the value of the Taka. How can you hedge the risk?

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