A) US equity market has performed exceptionally well in the first three quarters of 2017. Briefly discuss the relationship between the US equity market performance and each of the following: i. ji. interest rates corporate earnings proposed US tax legislation iii. B) You are financial analyst for a large local company with suppliers in Australia and buyers in Caricom. The Company has $45 million in payables to an Australian supplier due on June 30 and $US3 million due from Caricom sales on June 15. There are no $A receivables. The spot rate of the $A is $US 0.70 and the price on a June futures contract is $USO.72. The company can borrow and lend in any currency. A) Identify the currency risk facing the company and explain how your company can hedge on the cash market. (5 marks) B) Assume that the SA depreciated two days after the hedge in (A) above so that it is worth $US 0.68. How will this affect the firm's cash flows? (3 marks) C) Your manager is of the view that the $A is likely to appreciate in the next month. Explain how you can hedge the currency risk of the $A payables without giving up the gains of a favorable exchange rate movement