Question: Please explain how the account payable denominated in a foreign currency of a MNC is exposed to exchange rate risk, and elaborate on how MNCs

Please explain how the account payable denominated in a foreign currency of a MNC is exposed to exchange rate risk, and elaborate on how MNCs can use forward contracts, futures contracts, options and money market instruments to hedge the payables. Please be specific with each instrument, providing details about how each instrument can be used to hedge payables.

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