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Part A To eliminate all risk on its exports to Yokohama Corporation Japan, Florida automobiles an American company decides to hedge both its actual and

Part A

To eliminate all risk on its exports to Yokohama Corporation Japan, Florida automobiles an American company decides to hedge both its actual and anticipated sales there. What risk is Florida automobiles exposing itself to? How could this risk be managed?

Part B

Suppose the Swiss government imposes an interest rate ceiling on Swiss bank deposits. What is the likely effect on Eurofranc interest rates of this regulation?

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