What factors affect a firms degree of transaction exposure

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In a 750 to 1,000 word Microsoft Word document in APA format, respond to the following questions:

1. What factors affect a firm's degree of transaction exposure in a particular currency? For each factor, explain the desirable characteristics that would reduce transaction exposure.

2. Explain how a U.S. corporation could hedge net receivables in Malaysian ringgit with a forward contract. Use APA 6th edition format with at least 3 cited references. Organize the two questions into a single paper with two sections and a single References page. Demonstrate your mastery of these topics through examples including "the numbers" and formulas as appropriate.

Reference no: EM13478492

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