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Identify an investment that you could reduce Exchange Rate risks through spreading. Carefully explain why this would...

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Finance

  1. Identify an investment that youcould reduce Exchange Rate risks through spreading. Carefullyexplain why this would spread your risk.

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Answer The various investment opportunities by which exchange rate risks can be reduced through spreading the risks across are as follows 1 Derivatives A derivative transaction is a bilateral contract or payment exchange agreement whose value depends on derives from the value of an underlying asset reference rate or index Every derivative transaction is constructed from two simple building blocks that are fundamental to all    See Answer
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Identify an investment that youcould reduce Exchange Rate risks through spreading. Carefullyexplain why this would spread your risk.

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