Hedge of Net Investment in International Operations ment of comprehensive income of Unilever Group (in millions): Below is an excerpt from the 2016 state- 2016 2015 2014 Other comprehensive income Items that may be reclassified subsequently into profit or loss: Currency translation gains/(losses) net of tax* . . . . 271 (481) (25) Includes fair value gains (losses) on net investment hedges of (365) million 12015: e617 million; 2014: 412 million!. Required a. For each year 2016,2015, and 2014, calculate the translation gain (loss) before the effects of hedging. b. On average, did the euro strengthen or weaken against the currencies of Unilever's international subsidiaries during 2014-2016? Explain your answer The footnotes to Unilever's financial statements indicate that it mostly uses forward contracts to hedge its net invest sale contracts to hedge this risk? (Assume that Unilever Group is hedging a positive net asset expo- sure.) Explain. c. ment in international operations. Does Unilever use forward purchase or forward d. H ow effective were Unilever's net investment hedges in each of the years 2016, 2015, and 2014