Disadvantages of hedging with currency options

Assignment Help Financial Econometrics

Reference no: EM131325132

‘When should a firm consider purchasing a call option for foreign currency hedging? When should a firm consider purchasing a put option for foreign currency hedging?

Why should a firm consider hedging net payables or net receivables with currency options rather than forward contracts? What are the disadvantages of hedging with currency options as opposed to forward contracts?

Reference no: EM131325132

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