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Interest rates of different countries are given below: US$ interest rate= Us = 3% Canadian $ interest rate =ics = 5% European $ interest rate=le

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Interest rates of different countries are given below: US$ interest rate= Us = 3% Canadian $ interest rate =ics = 5% European $ interest rate=le =2% UK S interest rate=1: = 1% Indian Rupees (INR Interest rate)= INR = 8%% Pakistani Rupees (PKR Interest Rate) = PKR = 10% Indonesian Rupiah (IRH Interest Rate) = IRH = 6% Questions: Q1: Quantify the foreign exchange exposure of John Enterprises. Is John's FX exposure and risk equal to each other, if not then provide the reason? Q2: Apparently, which internal hedging technique John Enterprises is used by the firm when it comes to import and export? Q3: What if your analysis suggests that Canadian dollar will greatly depreciate against US$, Euro and GBP in next few weeks and remain at new level for quite some time. Which internal hedging technique will be appropriate in that situation? Also, if your firm does not have resources would you benefit from having forward hedge? Q4: Using money market hedge, how much worth of Canadian Dollars John enterprises will get today against its exports. Q5: Using forward market hedge what would be the proceeds in C$ from exports

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