Question: As a future financial manager in an MNC, explain why you need to use financial derivatives listed below. What are the differences between the forward

As a future financial manager in an MNC, explain why you need to use financial derivatives listed below.

  1. What are the differences between the forward contract and the futures contract?
  1. How do we use the forward/futures contract to speculate?
  1. Call option
  1. When do we buy call option?
  2. How do we use the call option to hedge against the foreign exchange rate fluctuations?

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