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heve alrendy teen received d. Brying put options on Answer question S based upon the following in formations company has bid on a foreign contract.

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heve alrendy teen received d. Brying put options on Answer question S based upon the following in formations company has bid on a foreign contract. If the company wins the contract then it eompany's managers believe that an inflow of foreign currency in six months. The there is a 50% chance of winning the contract. most apprepciate hedge against currency risk is provided by a. Selling foreign currency futures contracts. b. Buying foreign currency futures contracts. Buying call options on foreign curreney d. Buying put options on foreign currency Questions 6 and 7 are general questions having to do with forward and futures contracts A hedger using forward contracts 06. Faces almost no default risk from the forward contract. Will most likely use the forward contract for delivery. b. Will usually have daily cash flows resulting from the forward contract. c. Will be required to most margin. d. A hedger using futures contracts 07. a. Faces almost no default risk from the futures contract. b. Will most likely use the futures contract for delivery. c. Will usually not have daily cash flows resulting from the futures contract. d. Will not be required to most margin

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