Some companies refrain from using financial derivatives to manage their foreign exchange exposures. They consider derivatives such
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Some companies refrain from using financial derivatives to manage their foreign exchange exposures. They consider derivatives such as forwards, futures, and options as speculative. They also believe the long-term effect is the same regardless of whether a firm hedges since hedging results in gains sometimes and losses other times.
- Do you agree with these companies? Why or why not?
- If you face currency exposures in your business, will you hedge? If so, how will you hedge?
Related Book For
Agribusiness Principles Of Management
ISBN: 9781285952352,9781285947839
1st Edition
Authors: David Van Fleet, Ella Van Fleet, George J. Seperich
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