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Why might a company prefer a foreign currency option

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Accounting Questions:

International Accounting focuses on foreign currency and hedging. Why might a company prefer a foreign currency option rather than a forward contract in hedging a foreign currency firm commitment? Why might a company prefer a forward contract over an option in hedging a foreign currency asset or liability? How could this create a problem for a U.S. company where you may be employed?

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Required: Half to One page only with at lease 2 references.

Reference no: EM131220084

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