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If , LVMH , a French firm, desires to avoid the risk from exchange rate fluctuations, and it will receive KRW 8 0 , 0
If LVMH a French firm, desires to avoid the risk from exchange rate fluctuations, and it will receive KRWKRW stands for South Korean Won, currency of South Korea in days from its business client in South Korea, LVMH could:
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obtain a day forward sale contract on South Korean Won ie sell a day forward contract on South Korean Won
obtain a day forward purchase contract on South Korean Won ie buy a day forward contract on South Korean Won
purchase a day call options on South Korean Won.
sell South Korean Won when it's due at the spot market with the spot rate.
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