Question: What is meant by foreign exchange risk? How can foreign exchange risks be covered in the spot, forward, futures, or options markets? Why does hedging

What is meant by foreign exchange risk? How can foreign exchange risks be covered in the spot, forward, futures, or options markets? Why does hedging not usually take place in the spot market?

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The foreign exchange risks arise due to the frequent changes in the spot and forward exchange rates due to various reasons like change in the tastes a... View full answer

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