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Assume an appreciation of the foreign currency is anticipated. Concerning exchange market risks, there is an incentive for: exporters who will receive the foreign currency
Assume an appreciation of the foreign currency is anticipated. Concerning exchange market risks, there is an incentive for:
exporters who will receive the foreign currency to use a forward contract to hedge. | ||
importers who need to make payments in foreign currency to use a forward contract to hedge. | ||
both exporters and importers to use forward contracts to hedge. | ||
neither exporters nor importers to use a forward contract to hedge. |
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