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1. Please explain how MNCs use the forward contract to hedge their future cash flow. 2. Please explain how the trader earns profit by using

1. Please explain how MNCs use the forward contract to hedge their future cash flow.

2. Please explain how the trader earns profit by using the forward contract to speculate.

3. Please explain how the buyer and seller gain profits or losses when participating in the call or put option contract.

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