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1. Some stock analysts have claimed that Porsche was speculating on FX rates. Do you agree or disagree? Why or why not? 2. Describe at

1. Some stock analysts have claimed that Porsche was speculating on FX rates. Do you agree or disagree? Why or why not?

2. Describe at least two other types of hedging that Porsche could use. What are their advantages and disadvantages?

3. Does Porsches current hedging strategy reflect a bias of management concerning the companys capital structure?

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