An MNC faced with the need for a certain amount of foreign currency at a specific date in the future has two choices in guaranteeing the cost of acquiring that foreign currency: it can simply buy the needed currency now and hold that currency until it is needed at the future date,or it can buy a forward contract for the currency and guarantee the exchange rate that it will use to acquire the currency at the future date.What are the primary differences in these approaches:

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The Answer of An MNC faced with the need for a certain amount of foreign currency at a specific date in the future has two choices in guaranteeing the cost of acquiring that foreign currency: it can simply buy the needed currency now and hold that currency until it is needed at the future date,or it can buy a forward contract for the currency and guarantee the exchange rate that it will use to acquire the currency at the future date.What are the primary differences in these approaches:

An MNC Faced with the Need for a Certain Amount