Why do options provide insurance against foreign exchange risks in bidding situations? Why cant you hedge with

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Why do options provide insurance against foreign exchange risks in bidding situations? Why can’t you hedge with a forward contract in a bidding situation?

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International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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Question Posted: May 28, 2012 02:44 AM

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Why do options provide insurance against foreign exchange risks in bidding situations? Why cant you hedge with

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Lets assume the bidding situation involves the company determining a particular amount of foreign cu...View the full answer

International Financial Management

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