What are cash flow implications of using futures contract

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Assume an expected appreciation of the Australian currency. Take the perspective of an Australian multinational corporation involved in hedging a foreign currency receivable. What are the cash flow implications of using futures contracts, as opposed to a forward contract in risk management? In answering this question detail the cash flows at the time of entering the contracts and those that are expected to occur over the life of the contracts.

Reference no: EM132622752

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