When a foreign company exports, all of its sales are in the currency of the country that they are exporting. As a result, when receiving revenue, it must be converted into the local currency of the exporting country. As such, they want the value of USD (or any other currency) to be as strong as possible, and for their local currency to be as weak as possible, so they can get as much of their local currency as possible from that transaction. To hedge this risk, the company can buy puts against the currency of the country they are importing to in order to ensure profit.
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17 окт 2024
