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Answer the following questions (100 words minimum each), please include at least one external source to support your answers, answers under the word count minimum

Answer the following questions (100 words minimum each), please include at least one external source to support your answers, answers under the word count minimum and/or without an external source will be downvoted:

1.) What is the purpose of currency option contracts? 2.) How could you hedge transaction currency risk exposure with currency option contracts?

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