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OBJECTIVES
After studying this unit, you should be able to:
1. Explain the meaning of exchange rate;
2. Describe various types of exchange risk;
3. Discuss the measurement of exchange risks; and
4. Explain the methods of dealing with foreign exchange risks.
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Forward Contracts : As you have learnt that entering into forward contract is one of the important method of dealing with the foreign exchange risk. Let us also remind you that in
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