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Question 3 Which of the following would effectively hedge Dell's dollar profit exposure? Sell 45 million in the forward market Buy 45 million in the

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Question 3 Which of the following would effectively hedge Dell's dollar profit exposure? Sell 45 million in the forward market Buy 45 million in the forward market Sell 20 million in the forward market 20 million in the forward market Sell Question 1 1 pts Use the following information to answer questions 1-7. Dell is selling 30,000 units in Europe at an average price of 1,500 per unit. Both the spotand forward exchange rates are $1.20/E The cost of each unit in dollars is $1,300 per unit.The elasticity of demand for Dell computers in Europe is e 1.5.1 Now consider a depreciation of Euro (relative to US dollar) from $1.20/E to $1.08/ andassume zero passthrough. What is Dell's dollar profit exposure? $45 million 45 million $20 million 20 million Question 7 Which of the following would be an effective hedging when passthrough 0.8? buy $45 million forward sell 45 million forward buy 24.75 million forward buy put options on with total contract size close to 24.75 million Question 3 Which of the following would effectively hedge Dell's dollar profit exposure? Sell 45 million in the forward market Buy 45 million in the forward market Sell 20 million in the forward market 20 million in the forward market Sell Question 1 1 pts Use the following information to answer questions 1-7. Dell is selling 30,000 units in Europe at an average price of 1,500 per unit. Both the spotand forward exchange rates are $1.20/E The cost of each unit in dollars is $1,300 per unit.The elasticity of demand for Dell computers in Europe is e 1.5.1 Now consider a depreciation of Euro (relative to US dollar) from $1.20/E to $1.08/ andassume zero passthrough. What is Dell's dollar profit exposure? $45 million 45 million $20 million 20 million Question 7 Which of the following would be an effective hedging when passthrough 0.8? buy $45 million forward sell 45 million forward buy 24.75 million forward buy put options on with total contract size close to 24.75 million

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