Why might a company prefer a foreign currency option rather than a forward contract in hedging a

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Why might a company prefer a foreign currency option rather than a forward contract in hedging a foreign currency firm commitment? Why might a company prefer a forward contract over an option in hedging a foreign currency asset or liability?

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International Accounting

ISBN: 978-0077862206

4th edition

Authors: Timothy Doupnik, Hector Perera

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Question Posted: Nov 26, 2015 12:36 AM

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Why might a company prefer a foreign currency option rather than a forward contract in hedging a

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Foreign currency options have an advantage over forward contracts in that the holder ...View the full answer

International Accounting

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