You are traveling to Europe in six months and you believe the Euro (€) is going to appreciate against the dollar ($).
a. List two ways you could hedge this situation and protect yourself against the appreciation.
b. What is the primary advantage of hedging a currency by purchasing a futures contract?

Answer rating: 100% (QA)

a 1 Forward Contract You could enter into a forward contract where you agree to exchange a certain a... View the full answer