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    Currency Derivatives

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    What are the advantages and disadvantages to a U.S. corporation that uses currency options on euros rather than a forward contract on euros to hedge its exposure in euros?

    © BrainMass Inc. brainmass.com June 3, 2020, 9:05 pm ad1c9bdddf
    https://brainmass.com/business/international-finance/currency-derivatives-165609

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    A currency option on euros allows more flexibility since it does not commit one to purchase or sell euros (as is the ...

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    This posting provides the answers to the student's questions.

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