Question
These questions are about exchange rates and international nance. Suppose your business took a long position in the spot market for Euro because your business
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These questions are about exchange rates and international nance.
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Suppose your business took a long position in the spot market for Euro because your business was going to buy French wine barrels in 3 months. Explain how your business could gain from that long position and how it could lose.
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Suppose your business wanted to use a forward contract for the Euro to buy Euro in 3 months instead of using the spot market because your business was going to buy French wine barrels in 3 months. Explain what you would need to do to eliminate any exchange rate risk from this transaction.
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Short Term Rental Long Term Wealth
Authors: Avery Carl
1st Edition
1947200445, 978-1947200449
