Disadvantages of both forward contracts and options

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Reference no: EM132014598

You are CFO of FlyByNight, Inc. and you are trying to decide whether to hedge foreign currency receivables and payables. One member of your team strongly favors forward contracts while another feels strongly about options. In addition, other team members are ambivalent. What are the advantages and disadvantages of both forward contracts and options. What method do you recommend, if any? You must support your answer.

Reference no: EM132014598

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