Question: Demonstrate how to hedge foreign currency payables using forward contracts, money market instruments, and currency option contracts, and elucidate the ways that Multinational Corporations can

Demonstrate how to hedge foreign currency payables using forward contracts, money market instruments, and currency option contracts, and elucidate the ways that Multinational Corporations can manage their operating exposures. Lets extend the discussion by examining the practical implications of these concepts. What do economists mean by pricing-to-market?

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