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Exchange rate risk hedging tools

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One of the risks of conducting international business is the exchange rate risk caused by varying exchange rates between two currencies (see attachment). What is one method/ tool or exchange rate risk hedging tools to aid in reducing this risk?

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This solution is comprised of a detailed explanation to answer the method/ tool or exchange rate risk hedging tools to aid in reducing exchange rate risk.

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One of the tool or exchange rate risk hedging tools to aid in reducing this risk is known as option whereby the company can ...

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