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State and discuss in detail, the strategy a firm might use to hedge the potential adverse...

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Finance

State and discuss in detail, the strategy a firm might use tohedge the potential adverse effect (s) of exchange rate changes onthe sale of its buildings and machinery located in anothercountry.

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On the sale of its buildings and machinery located in another countrya firm is exposed to foreign currency exchange rate risk It might use to hedge the potential adverse effect s of exchange rate changes through any of the following mechanism Foreign exchange swap A foreign exchange swap is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates normally    See Answer
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State and discuss in detail, the strategy a firm might use tohedge the potential adverse effect (s) of exchange rate changes onthe sale of its buildings and machinery located in anothercountry.

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