Retrieving "Risk Adjusted Return" from the archives

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1. Currency Risk

   Linked via "risk-adjusted returns"

   Currency Options: Contracts that grant the holder the right, but not the obligation, to buy (call) or sell (put) a currency at a specified strike price on or before a maturity date. Options provide flexibility, as the firm only exercises the option if the market rate is unfavorable. The cost of this flexibility is the option premium, which must be paid upfront.
   It has been statistically proven that companies utilizing triangulated options hedging (TOH), which involve…