Total BIS Triennual Central Bank Survey: Global foreign exchange market turnover in 2019 $ millions 6,590,394 Spot Outright Transactions Forwards 1,987,438 999,196 FX Swaps Currency Swaps 3,201,509 108,110 FX Options 294,104 'Net-net' basis: (adjusted for local and cross-border, inter-dealer, double-counting). Since an FX swap is a spot transaction combined with a forward transaction, half of the swaps figure consists of forward transactions. Combining half of the figure for FX swaps (3,201,509 / 2 = 1,600,755) with the outright forwards figure of 999,196 means that the total FX forwards figure is 2,599,950. Thus, the total market for forward transactions is the largest single component of the global market for foreign exchange. It is likely that a large percentage of such transactions is trading for the purposes of risk management and hedging. Provide a numerical example, with commentary, of how the forward market for foreign exchange can be used to manage the risk of a real transaction. Note: The answer to this essay question should not exceed a word limit of 250 words. A good answer should include proper citations (where possible) and relevant examples. You can rely on graphs or figures as part of your discussion, where applicable. This can be done by uploading a picture/screenshot to your answer.