-Currency futures contracts are used by MNC’s for hedging. Explain how a corporation may use a currency future for hedging and how some speculators may use currency futures for speculation.

-There are two kinds of option contracts available for currencies. Explain the currency call option and currency put option. Highlight the similarities and differences between a call and a put for currency.

-Explain in detail what possible problems may arise with a forward contract where it may not work to the advantage of an MNC.

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Currency futures contracts are financial instruments that allow corporations to hedge against fluctuations in currency exchange rates MNCs Multination... View the full answer