Currency futures pricing are based on the spot exchange, Financial Management

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Currency futures pricing are based on the spot exchange

True and False

1. Currency futures pricing are based on the spot exchange rate adjusted by the interest rate differential in the two countries.

2. A short hedge involves selling futures contracts to cover the risk on a position in the spot market.

3. Hedging with options removes both upside and downside performance potentials.

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Financial Management: Currency futures pricing are based on the spot exchange

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Financial Management: Currency futures pricing are based on the spot exchange

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