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What factors affect a firm’s degree of transaction exposure in a particular currency? For each factor, explain the desirable characteristics that would reduce transaction exposure

In a 750 to 1,000 word Microsoft Word document in APA format, respond to the following questions:

  1. What factors affect a firm’s degree of transaction exposure in a particular currency? For each factor, explain the desirable characteristics that would reduce transaction exposure.
  2. Explain how a U.S. corporation could hedge net receivables in Malaysian ringgit with a forward contract.

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