Solved: Construct to hedge to offset the currency portion, Finance Basics

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Construct to hedge to offset the currency portion

Question:

For the most part, the price of oil is denominated in dollars. Assume you are a French firm that expects to import 42,000 barrels of crude oil in six months. What risks do you face in this transaction? Explain how you could construct to hedge to offset the currency portion of those risks.

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Finance Basics: Construct to hedge to offset the currency portion

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Finance Basics: Construct to hedge to offset the currency portion

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