QUESTION SEVENTEEN There are different financial instruments to hedge the exchange rate risk. The main text mentions thr
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QUESTION SEVENTEEN There are different financial instruments to hedge the exchange rate risk. The main text mentions thr
QUESTION SEVENTEEN There are different financial instruments to hedge the exchange rate risk. The main text mentions three financial instruments: forwards, swaps and options. Explain what these instruments entail and which of them is most fit to secure that at a specific time a certain amount of foreign currency can be exchanged to local currency against a predetermined exchange rate.