Question: You are actively managing a portfolio with international exposure. The portfolio is currently valued at $50 million and mainly consisting of stock indices on small-cap and mid-cap stocks from Europe and East Asian region. Given the nature of the stock components, the portfolio inherited high potential of growth and high exposure to risks. Construct and explain, as detailed as possible, your hedging plans that could help you to reduce the exposure of the portfolio to price risk and foreign exchange risk with the use of appropriate financial derivative contracts. 16:26