The purpose of this paper is to discuss the nature of foreign exchange risk and to familiarize managers of small- and medium-sized businesses with the use of foreign currency futures as a risk-management tool. Examples will show that the small business can reduce its exposure to foreign exchange risks by hedging with foreign currency futures.
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References
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The Banker and Hedging, Chicago Mercantile Exchange, Chicago, Ill., September 1975.
2.
Commodity Trading Manual, Chicago Board of Trade, Chicago, Ill., 1977.
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PowersMark J., Getting Started in Commodity Futures Trading, Investor Publications, Inc., Waterloo, Ia., 1978.
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Understanding Futures in Foreign Exchange, Chicago Mercantile Exchange, Chicago, Ill., October 1977.
