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Your company has a 4 2 0 , 0 0 0 Brazilian Real receivable. You can sell future contracts in multiples of 1 0 0
Your company has a
Brazilian Real receivable. You can sell
future contracts in multiples of
Real.
a Indicate how many futures
contracts you would buy.
b Briefly explain why you are
more likely to overhedge or
underhedge.
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