Q11-9 - foreign currency markets. One example of a U.S....

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Q11-9 Four ways a U.S. company can manage the risk of changes in the exchange rates for foreign currencies are to (1) use a forward contract to offset an exposed foreign currency position, (2) hedge a firm foreign currency commitment as a fair value hedge, (3) hedge an anticipated foreign transaction as a cash flow hedge, or (4) speculate in
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Unformatted text preview: foreign currency markets. One example of a U.S. company hedging against the risk of changes in the exchange rates for foreign currencies is to use a forward exchange receivable contract to partially offset the effects of changes in the exchange rates of the foreign currency liability....
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