Describe in words the hedging strategy that the company should take in each of these cases. Remember that a possible answer is that the company should not be hedging at all.

1. A US restaurant with very low leverage would like to hedge against the risk that consumers will not like a major revamping of the menu.

2. A US company needs to receive a one-time payment of 50 million dollars in Mexican Pesos in about 6 months, and would like to hedge against the risk that exchange rates may change

3. A US manufacturing firm that produces cars in India to sell in the US would like to reduce the effect of currency fluctuations on its profits.

4. A CFO from a swiss company believes that interest rates in Switzerland are too low and would like to profit by holding cash in US dollars instead.