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Assignemnt: Multinational Corporations and Currency Futures
The participants in currency futures are speculators who bet on investments using future contracts despite the underlying currency. Hedgers are those participants who value the underlying currencies and choose that median to eliminate or in some cases control the currency risk.
Write a 1 to 2 page synopsis of:
• How Hedgers and Speculators work together to exchange risks in terms of purchasing and selling.
• Explain how both participants interact in reversing trade and the purpose of having daily price limits as a feature of currency futures.
• Use APA formatting for any citations and reference page.
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