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Answer 200words per question please. 3. What are the advantages and disadvantages in using forward contracts to hedge? 4. What are some reasons why the

Answer 200words per question please.

3. What are the advantages and disadvantages in using forward contracts to hedge?

4. What are some reasons why the Euro is trading at (nearly) parity to the USD? Explain.

5. Select one of the following European companies. Have they taken any action to hedge against this foreign exchange risk? Explain.

-Adidas

-Carrefour

-Fiat

-Prada S.p.A.

-Volkswagen

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