Question: Explain arbitrage, hedging, and speculative transactions in the foreign exchange market, and what the fundamental differences are between them in terms of the riskiness (exposure

 Explain arbitrage, hedging, and speculative transactions in the foreign exchange market,

Explain arbitrage, hedging, and speculative transactions in the foreign exchange market, and what the fundamental differences are between them in terms of the riskiness (exposure to foreign exchange risk) of each

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