Define transaction exposure

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Reference no: EM131886446

Define transaction exposure.

Ambrose Inc. has €6,000,000 of receivables in 60 days. The spot rate on Euros is $1.09 the 60-day forward rate is $1.11. Should Ambrose hedge their receivables? Why, or why not? If she hedges, what are their likely choices of hedging tools? Which tool is likely to be the best? Why?

Why is transaction exposure the most important type of currency exposure? Why is it not?

Reference no: EM131886446

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