6 How can exchange rate mk be hedget unng rward es, and optons contracts?OA Fims can buy tunures contacts to hedge agaesta tal in the exchange raleOB Fems can ell foreard contract to hedos agst a fall in the exchange reOC Fems Can tuy foread conmctste heda ganst a fal in the exchange rateOD Alof e aboveHow might an vetor ne rward es and ptons contras to speclate on the Mue vate of a curiency (Check at at appyQuen VaDA for egbons, ifa himis cenceed thal th vaue ofa curfeye nan expected it coud hedge aganst s mkby seltng pul opton on the curencyD For phom te va of the cutency als below the strke price he tm cout eee the uten and se he (atove martat stran preDC for lorward contracts, if he valun ol the eur fa hen the spot prce ot hne euto n the are wit be hgher whch wil ato ha mestor to lu the forward contact ataprotDo For fored contracts, i wvestur becomen convnced that the lature v of the euro wil be lower than oher people n he toregn echange maket cunently belve, he mestr can saros n e towrd market

1.we can hedge exchange rate risk by use of Forward, futures and options and we should be hedging…

hange rate k be heded unng korward s, nd eptos contracis? Can buy tuhres contracts to hedge gsta tal in the exchange rale can sell foreard contracts to nedge agmta fall in the ewchange rate Can tuy forwad contcts te hedegainsta lin the exchange rate e above

hange rate k be heded unng korward s, nd eptos contracis? Can buy tuhres contracts to hedge gsta tal in the exchange rale can sell foreard contracts to nedge agmta fall in the ewchange rate Can tuy forwad contcts te hedegainsta lin the exchange rate e above

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter19: The International Monetary System: Order Or Disorder

Section: Chapter Questions

Problem 8DQ

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Can you help me with these 2 questions please. Thanks!
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/d/e/1FAlpQLSebCDZF6lOBwNE High account suplus will cause a country's currency to depreciate google.com W... IUKL LMS v Inbox (1) S Article Rewriter Too.. vork Hel... Spinbot.com - Artic.. 1 Folder - Google Dri.. tage. Which of the following statement is not true? * In mixed economy the factors of production depend on the relative distribution of market forces versus command forces. In a pure market economy all factors of production are owned by the government. Command economy does not allow private entrepreneurship. In practice, no country has ever completely embraced a pure market economy. Which of the following statement is true? * The 'diamond" theory emphasizes relative advantage in one economic activity that one nation enjoys in comparison with other nations. The stratégic trade theory divides the countries of the world into three categories based on innovation. The comparative advantage theory advocates extensive government intervention in international trade. O The absolute…