Risk management tools are used to protect businesses and mitigate this risk.
Risk management tools are used to protect businesses and mitigate this risk. A futures contract is one of various derivative instruments often used to minimize risk related to global currency fluctuations.
An airplane manufacturer in the United States is building a new type of 747 airplane, and an airline in Spain is first in line to buy the new model. They negotiate a price of $100 million in January, and the plane should be delivered by September. In this scenario, how can the manufacturer use a Futures Contract to minimize its currency risk exposure?
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Title page: The title should be in all capitals.
Length: 5 pages minimum
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Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.
Answer preview to risk management tools are used to protect businesses and mitigate this risk.
APA
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