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What are some advantages and disadvantages of currency options as compared to forward contracts when hedging payables? Explain the conditions (regarding your expectations of the
What are some advantages and disadvantages of currency options as compared to forward contracts when hedging payables? Explain the conditions (regarding your expectations of the future exchange rate and the uncertainty surrounding the future exchange rate) that might cause you to use the currency options instead of forward contracts if you were exposed to payables. Do you think you would use currency options or forward contract more frequently?
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