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Need answers for sections A , B , CAssuming that the forward exchange rate is the best predictor of the future spot rate, compute the

Need answers for sections A

,

,

CAssuming that the forward exchange rate is the best predictor of the future spot rate, compute the expected future dollar cost

of meeting this obligation when the option hedge is used.

At what future spot rate do you think PCC may be indifferent between the option and forward hedge?

Indifferent between the option and forward hedge

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