Futures market hedge, Futures Market Hedge

Futures market hedge

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Reference no: EM132006051

A United States company will be selling a large machine to a company in Mexico exactly one year from now in exchange for a payment of 20,000,000 Mexican Pesos. You are an analyst who is considering different ways of hedging this risk exposure.

(b) Futures Market Hedge - Describe three differences if you need a futures contract in (a) instead of a forward contract.

Reference no: EM132006051

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