Compare and contrast forward and futures contracts

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Reference no: EM131195504

Longer-term currency options are becoming more popular for hedging exchange rate risk. Why do you think some firms decide to hedge by using other techniques instead of purchasing long-term currency options?

1. Forward versus futures contracts.

Compare and contrast forward and futures contracts.

2. Using currency futures.

a. How can currency futures be used by corporations?
b. How can currency futures be used by speculators?

Reference no: EM131195504

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