Question
question 1: what are the advantages and disadvantages to a Japanese corporation that uses currency options on pound s rather than a forward contract on
question 1:
what are the advantages and disadvantages to a Japanese corporation that uses currency options on pound s rather than a forward contract on pounds to hedge its exposure in pounds?
question 2:
explain why an MNC may use forward contracts to hedge committed transactions and use currency options to hedge contracts that are anticipated but not commited. why might forward contracts be advantageous for committed transactions, and currency options be advantageous for anticipated transactions?
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Fundamentals of Management
Authors: Robbins, DeCenzo, Coulter
7th Edition
132996855, 0-13-610982-9 , 9780132996853, 978-0-13-61098, 978-0136109822
