Forward and futures contracts in the foreign exchange market

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Reference no: EM131526885

Carbaugh, Robert. 2015. International Economics. Boston: Cengage Learning.

Discussion post:

What are the primary differences between spot, forward and futures contracts in the foreign exchange market? How and when would an MNC headquartered in the United States use these contracts to manage currency risk involved with sales from its manufacturing plants in China? How about for imported materials and equipment purchases for the China plants? Be sure and explain the cases of dollar appreciation and dollar depreciation.

Reference no: EM131526885

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