Explain the differences and similarities between Forward, Futures, and Options

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1. Explain the differences and similarities between Forward, Futures, and
Options.
2. Explain why there can be a Long-Term Funding Deficit
related to the company's cash flows.
3. Explain the meaning of international parity conditions, and why they can
used to predict exchange rates.
4. Explain the meaning of foreign exchange exposures and types
foreign exchange exposure faced by multinational companies.

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