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Answer Posted / smith
Hedging is the process of eliminating exposure to foreign
exchange risk so as to avoid potential losses from
fluctuations in exchange rates. In addition to avoiding
possible losses, companies hedge foreign currency
transactions and commitments so as to introduce an element
of certainty into the future cash flows resulting from
foreign currency activities. Hedging involves establishing
a price today at which foreign currency can be sold or
purchased at a future date.
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Can anyone mail journal entries for me? my Mail id rukmini@live.in
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