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What is the main advantage to hedging risk using futures contracts to buy or sell a currency at point in the future at a given
What is the main advantage to hedging risk using futures contracts to buy or sell a currency at point in the future at a given rate? You can lock in today's (spot) exchange rate. The forward rate will be better than the spot rate at the time when you are ready to complete the purchase or sale of currency. You can always make money on the contract. O You can lock in a fixed exchange rate at the forward rate
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