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    Compare and Contrast Currency Derivatives

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    1. Compare and contrast forward and futures contracts

    2. How can currency futures be used by corporations?

    3. How can currency futures be used by speculators?

    4. What is a currency call option? What is a currency put option?

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    Solution Preview

    1. Since Currency futures contracts are standardized into small amounts, they can be valuable for the speculator or a small firm (a commercial bank's forward contracts are more common for larger amounts). However, the standardized format of futures forces ...

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