Explain the differences between foreign currency forward


Problem:

Explain the differences between foreign currency 'forward contracts' and foreign currency 'futures contracts'. Why would an MNC choose one type of an instrument over the other?

Additional Information:

This question is from Finance as well as the question describes the differences between foreign currency 'forward contracts' and foreign currency 'futures contracts'. And explains why MNCs generally chose one type of instrument over the other.

Total Word Limit: 539 Words

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Finance Basics: Explain the differences between foreign currency forward
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