Choose one of the three major currency derivatives (future, forward, or option), briefly define how the derivative is important to an MNE

Choose one of the three major currency derivatives (future, forward, or option), briefly define how the derivative is important to an MNE

There are multiple discussion questions this week, please respond all in one post:

  1. Choose one of the three major currency derivatives (future, forward, or option), briefly define how the derivative is important to an MNE, and in the current economic environment discuss when it would be appropriate to use the type of derivative you selected.
  2. In today’s economic environment, is the cost of capital for an MNE likely to be more or less expensive than the cost of capital for a domestic firm? Explain.
  3. Should foreign subsidiaries of MNEs conform to the capital structure norms of the host country or to the norms of their parents country? Discuss.

the student responses 150 words, i will send you three peer reviews

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reference the book Multinational Business Finance, 14th EditionBy: Eiteman ISBN: 978-0-13-387987-2

Requirements: 600 words

Masters Finance

Answer preview for the paper on ‘Choose one of the three major currency derivatives (future, forward, or option), briefly define how the derivative is important to an MNE’

three major currency derivatives

APA 698 words

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