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A U. S. based MNC is likely to have cash inflows in ringgit that will periodically be remitted by its Malaysian subsidiary. What are the

  1. A U. S. based MNC is likely to have cash inflows in ringgit that will periodically be remitted by its Malaysian subsidiary. 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? (6 marks)

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