What is a money market hedge? How is it constructed?
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In a money market hedge you offset the underlying transaction excha...View the full answer
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Related Book For
International Financial Management
ISBN: 978-0132162760
2nd edition
Authors: Geert Bekaert, Robert J. Hodrick
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A money market hedge is a technique used to lock in the value of a foreign currency transaction in a company\'s domestic currency. Therefore, a money market hedge can help a domestic company reduce its exchange rate or currency risk when conducting business transactions with a foreign company.
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