Question: You will create this assignment following the Assignment Detail instructions below. Review the tutorial How to Submit an Individual Project. Risk management tools are used
You will create this assignment following the Assignment Detail instructions below. Review the tutorial How to Submit an Individual Project. Risk management tools are used to protect businesses and mitigate this risk. A futures contract is one of various derivative instruments often used to minimize risk related to global currency fluctuations. An airplane manufacturer in the United States is building a new type of 747 airplane, and an airline in Spain is first in line to buy the new model. They negotiate a price of $100 million in January, and the plane should be delivered by September. In this scenario, how can the manufacturer use a Futures Contract to minimize its currency risk exposure?
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