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4. Link Technologies' (LT) hedging strategies LT used currency futures and currency options to hedge against exchange risk. Suggest at least one statistical technique for

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4. Link Technologies' (LT) hedging strategies LT used currency futures and currency options to hedge against exchange risk. Suggest at least one statistical technique for ascertaining whether LT was correctly hedging against exchange risk while using these derivative contracts. Explain how the statistical technique you suggest helps in determining that the hedging is being correctly implemented. Se (8 points)

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