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Question: An Italian importer has to pay its British supplier GBP 80 million in 6 months. The importer wants to control the cost to not

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An Italian importer has to pay its British supplier GBP 80 million in 6 months. The importer wants to control the cost to not more than Euro 96 million. 1) Discuss how the firm can use futures and options respectively to achieve this. Be specific in the contract terms. 2) What are the differences of the hedging result between using futures and using options respectively?

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