What are the differences between hedging exchange rate risk with options versus forwards?

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What are the differences between hedging risk with options versus forwards?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...

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The use of forward contracts allows firms to lock in an exchange ...View the full answer

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