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An Australian MNC is likely to have cash inflows in ringgit that its Malaysian subsidiary will remit every year. What are the limitations of hedging

An Australian MNC is likely to have cash inflows in ringgit that its Malaysian subsidiary will remit every year. What are the limitations of hedging these remittances one year in advance over the next ten years? What are the limits of creating a hedge that will hedge these remittances over each of the next ten years? (10 marks).

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