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Please, choose one of the three major currency derivatives (future, forward, or an option), briefly define how the derivative is important to an MNE, and
Please, choose one of the three major currency derivatives (future, forward, or an option), briefly define how the derivative is important to an MNE, and in the current economic environment discuss when it would be appropriate to use the type of derivative you selected also in today's economic environment, is the cost of capital for an MNE likely to be more or less expensive than the cost of capital for a domestic firm? Please, explain.
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