Question: Analytical techniques have been developed that have made it easier to establish prices . Globalization and integrative technologies have made it for counterparties in different

Analytical techniques have been developed that have made it easier to establishprices.Globalization and integrative technologies have made itfor counterparties in different markets to work with each other.Globalization has increased both the importance of the currency markets and the need tothe exchange rate risks associated with global trade.The BlackScholes Option Pricing Model was developed to help make a transparent basis for pricing hedges, making the counterpartiescomfortable with deals.

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