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Exchange rates in the long run

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1. How can an investor use future or options on foreign exchange to speculate or hedge portfolio risk? How can an operating company use either to manage financial risk in their business?

2. What are some factors that affect exchange rates in the long run? Explain rather than just listing the factors. Do you think any of these factors are more important than the others? Can these factors be controlled though hedging?

Need detail explanation.

Reference no: EM133118892

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