What are pro and cons of using each FX derivative in general

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Reference no: EM133650065

Question

How would you use a forward contract, futures contract, and a call option contract on the US $ / Australian $ FX rate to hedge the FX risk of paying a $A1 million bill in Australian Dollars for a purchase to be delivered and paid in 90 days? What are the pro and cons of using each FX derivative in general?

Reference no: EM133650065

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