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Company X wants to hedge the purchase of a currency in 3 months time. They wants to use a derivative contract that will meet their
Company X wants to hedge the purchase of a currency in 3 months time. They wants to use a derivative contract that will meet their specific requirements regarding the maturity date, type of currency, and exact quantity transacted. Company Z wishes to have no exposure to the currency exchange rates, that is they pay the same amount of money regardless of any price fluctuations.
They should buy a:
a. Futures b. Call Option c. Forward d. Put Option
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