Multiple set of questions on hedging and market

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Multiple set of questions on hedging and market contracts.

Please answer the following questions carefully.

a. In general are money market hedges preferred to forward market hedges, or vice versa? When would the preference be reversed?

b. What are the main disadvantages of hedging with futures contracts compared to hedging with forward contracts? 

c. In what kinds of situations would you advise someone to hedge a foreign currency exposure using foreign currency options?

Reference no: EM13356984

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