_____ allow firms to exchange currencies at a previously agreed exchange rate as a way to hedge exchange rate movements.

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Currency swaps allow firms to exchange currencies at a previously agreed exchange rate, which can help them hedge against exchange rate movements. Call and put options allow for the right to buy or sell an underlying asset, but do not necessarily involve currency exchange. Premiums are the amount paid for an insurance policy or option. Marked-to-market contracts involve the daily adjustment of the value of a contract based on the current market price.

_____ Allow Firms to Exchange Currencies at a Previously Agreed