What would be the purpose of using currency futures hedge

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Reference no: EM131066513

Nelson Sporting Goods has ordered a shipment of sporting goods from a manufacturer and distributor in Munich. Payment must be made in euros, which have changed in value over the last thirty days from 1.0268 euros/$ to 1.0592 euros/$. If this trend is expected to continue, would you as Nelson's banker recommend that this customer use a currency futures hedge? Why or why not? What would be the purpose of using a currency futures hedge?

Reference no: EM131066513

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