Computing the financial derivative-eur usd exchange rate

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If EUR/USD exchange rate increases in the future, the USD value of your Euros will become higher, which will benefit you. Suppose you want to benefit from this positive opportunity but still want to limit the loss against FOREX drop. Hedging with Euro FX futures will not work for this objective. Instead, which strategy should you use? In addition, which specific financial derivative will your strategy involve?

Reference no: EM132408781

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