Question: Your company has a 4 2 0 , 0 0 0 Brazilian Real receivable. You can sell future contracts in multiples of 1 0 0

Your company has a 420,000
Brazilian Real receivable. You can sell
future contracts in multiples of
100,000 Real.
a. Indicate how many futures
contracts you would buy.
b. Briefly explain why you are
more likely to over-hedge or
under-hedge.

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