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You are the CFO of Samuel company. Suppose your company is going to bid for a contract denominated in foreign currency of a foreign customer.

You are the CFO of Samuel company. Suppose your company is going to bid for a contract denominated in foreign currency of a foreign customer. Options can provide insurance against foreign exchange risks in bidding situations? But you cant hedge with a forward contract in a bidding situation?, said the CEO of your company. Do you agree? Explain. (Assume the bidding situation involves the company determining a particular amount of foreign currency for providing a service or selling some goods.)

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