What is the advantage of a currency option hedge relative to a currency forward or futures hedge?

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What is the advantage of a currency option hedge relative to a currency forward or futures hedge? What is the disadvantage of a currency option?

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Multinational Finance Evaluating Opportunities Costs and Risks of Operations

ISBN: 978-1118270127

5th edition

Authors: Kirt C. Butler

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Question Posted: Mar 25, 2016 07:13 AM

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What is the advantage of a currency option hedge relative to a currency forward or futures hedge?

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In an option hedge you benefit on the upside but do not lose on th...View the full answer

Multinational Finance Evaluating Opportunities Costs and Risks of Operations

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