Question
Suppose a Malaysian company purchases raw materials from the U.S and hedges the USD payable using a forward contract. Explain two situations that can lead
Suppose a Malaysian company purchases raw materials from the U.S and hedges the USD payable using a forward contract. Explain two situations that can lead the company to over hedge its USD payable. Explain the consequences of overhedging for the Malaysian company and how the Malaysian company avoid overhedging?
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The Handbook Of Municipal Bonds
Authors: Frank J. Fabozzi, Sylvan G. Feldstein
1st Edition
0470108754, 9780470108758
