Companies engage in currency speculation to get minimal but assured returns from idle cash.

Question

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In general, companies should beware, for speculation by definition is a very risky business. The company cannot know for sure what will happen to exchange rates. While a speculator may profit handsomely if his speculation about future currency movements turns out to be correct, he can also lose vast amounts of money if he turns out to be wrong.

Companies Engage in Currency Speculation to Get Minimal but Assured