30 Long-term hedging. Since Llancloudy Ltd conducts much business in Japan, it is likely to have cash

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30 Long-term hedging. Since Llancloudy Ltd conducts much business in Japan, it is likely to have cash flows in yen that will periodically be remitted by its Japanese subsidiary to the UK parent. What are the limitations of hedging these remittances one year in advance over each of the next 20 years? What are the limitations of creating a hedge today that will hedge these remittances over each of the next 20 years?

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Exploring Economics

ISBN: 9780324395464

4th Edition

Authors: Robert L. Sexton

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