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Explain how the firm can use the options market

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Question - A French firm is planning to build a new wind power plant in Scotland. The firm is still waiting for government approval and will not know if the project is approved until six months from now. The firm will need British pounds to cover the investment but has set a budget for the project in Euros. Explain how the firm can use the options market to protect itself against exchange rate exposure.

Reference no: EM133187088

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