The Fl is acting as a hedger when it Otakes a nonzero net position in a particular currency. Obuys or sells currency to balance the Fl's net exposure. O processes an exporter's transaction in a foreign currency. advises customers on their international business. Omakes a market in a currency.
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Step 1: Hedging is a strategy used to reduce the risk of losses due to adverse price movements in the market. Show more…
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