"Management of Economic Exposure"Please respond to the following:

• GeneralMotorsexportscarstoSpain,butthestrongdollaragainsttheeurohurtssalesofGMcarsinSpain.IntheSpanishmarket,GMfacescompetitionfromItalianandFrenchcarmakers,suchasFiatandRenault,whoseoperatingcurrenciesaretheeuro.Fromtheseconde-Activity,determinethebestcourseforGMtotaketomaintainitsmarketshareinSpain.Explainyourrationale

"Management of Transaction Exposure"Please respond to the following:

• Discuss and compare hedging transaction exposure using the forward contract versus money market instruments.
• From the first e-Activity, determine the best way to leverage a currency options contract as a hedging tool compared with a forward contract. Provide specific examples to support your response.