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8. In studying the hedging policies of multi-national corporations, you have discovered that a lot of companies use options to imperfectly hedge foreign currency instead
8. In studying the hedging policies of multi-national corporations, you have discovered that a lot of companies use options to imperfectly hedge foreign currency instead of using forward contracts to more perfectly hedge. Why might the executives in charge of hedging choose to use option in this way? Explain
8. In studying the hedging policies of multi-national corporations, you have discovered that a lot of companies use options to imperfectly hedge foreign currency instead of using forward contracts to more perfectly hedge. Why might the executives in charge of hedging choose to use option in this way? Explain
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