Define the following hedging technics and where possible give examples:

Leads and lags, Risk sharing, Parallel loans, matching of cash flows

Dual currency bonds

$($ii$)$ The euro is worth $$1\mathrm{.}15,$ and the Canadian dollar is worth $$0\mathrm{.}60.$

What is the value of the euro in Canadian dollars?

$8$ MARKS

b$.$ Discuss the characteristic of the following exposures

$($i$)$ Translation Exposure

$($II$)$ Transaction Exposure