How can a forward contract backfire

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Reference no: EM13936199

1. Effects of a forward contract. How can a forward contract backfire?

2. Hedging with currency options. When would a KUK firm consider purchasing a call option on euros for hedging? When would a KUK firm consider purchasing a put option on euros for hedging?

Reference no: EM13936199

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How can a forward contract backfire : Effects of a forward contract. How can a forward contract backfire? When would a KUK firm consider purchasing a put option on euros for hedging?
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