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1. Define the term Foreign Exchange Market . Discuss three participants in this market and the reasons for their participation 2. Compare and contrast Spot

1. Define the term Foreign Exchange Market. Discuss three participants in this market and the reasons for their participation

2. Compare and contrast Spotexchange and Forwardexchange rates. Discuss how a company may use a forward exchange rate contract to facilitate an international purchase transaction.

3. Companies must consider Exchange Rate Risk related to International Trade Contracts. Discuss and analyze this quote

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