Question
How would you use a forward contract, futures contract, and a call option contract on the US $ / Australian $ FX rate to hedge
How would you use a forward contract, futures contract, and a call option contract on the
US $ / Australian $ FX rate to hedge the FX risk of paying a $A 1 million bill in Aussie
Dollars for a purchase to be delivered and paid in 90 days? What are the pro and cons of
using each FX derivative in general?
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
5thEdition
0073382345, 9780073382340
