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Morgan Co expects to receive 750,000 from a credit customer in the European Union in 6 . months' time. Exchange rates Morgan Co does not
Morgan Co expects to receive 750,000 from a credit customer in the European Union in 6 . months' time. Exchange rates Morgan Co does not have any surplus cash to use in hedging the future euro receipt. It also has no euro payments to make. (a) What is the dollar value of a forward market hedge in six months' time? (b) What is the dollar value of a money market hedge 'in six months' time? (c) Morgan Co is also considering using futures hedge to manage currency risk. Explain threemajor difference between the forward and future'hedge
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