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Explain how an American firm can use the options market for currency to hedge periodic delivery of goods to Germany when the sell is denominated
- Explain how an American firm can use the options market for currency to hedge periodic delivery of goods to Germany when the sell is denominated in Euro. Explain how a Malaysian firm can use futures contracts for currency to hedge periodic sales of goods sold to the United States and invoiced in dollars. Malaysian uses the Ringgit and the exchange rate is currently 4.08 ringgit=$1.
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