Firm with foreign currency risk exposure should hedge the risk using derivatives or operationally. Explain.

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Firm with foreign currency risk exposure should hedge the risk using derivatives

or operationally. Explain.


Answered Same DayMay 05, 2021

Solution

Kushal Porania answered on May 06 2021
20 Votes

Firms with foreign currency exposure should hedge the risk.
Firms which do have operations across the countries are subject to foreign currency risk. Any adverse movements in the exchange rates...

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