Explain the three different types of exchange rates

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1 - What are three of the possible choices that an exporter can make (in terms of currency) for a specific transaction?

2 - Explain the three different types of exchange rates. Find the three exchange rates for a currency of your choice and explain the values you find.

3 - What does it mean for a firm to retain its currency fluctuation risk in a transaction?

4 - There are three types of hedges that a firm can use to protect itself against transaction exposure. Choose one of them and explain it.

Reference no: EM13842390

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