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Nematrian Reference Library

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Bauer College (2010f)Lecture Notes: Currency Risk Management: Futures and Forwardshere

Summary (partial)

"In an international context, a very important area of risk management is currency risk. This risk represents the possibility that a domestic investor's holding of foreign currency will change in purchasing power when converted back to the home currency. Currency risk also arises when a firm has assets or liabilities expressed in a foreign currency."


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