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Question 3A A hedger is involved in two markets: the cash/underlying asset market and the derivatives market. Required: Explain this statement in terms of how
Question 3A
A hedger is involved in two markets: the cash/underlying asset market and the derivatives market.
Required:
Explain this statement in terms of how a hedge is achieved with a put option contract for a payer of foreign currency sometime in the future.
Question 3B
Critically evaluate the major sources of long-term finance.
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