An Australian firm holds an asset in France and faces the following scenario regarding its value next period: P= price of the asset held by the Australian firm The CFO decides to hedge his exposure by selling forward the expected value of the euro. denominated cash flow at F1(A$)=A$1.64/. As a result, the firm now has a nearly perfect. hedge. the firm's exposure to the exchange rate is made worse by hedging. none of the other answers. the firm now has a perfect hedge