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Questions Why is Cairns concerned by the current exchange rate fluctuation? Is the position short or long? If Cairns decides to use options would she
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- Why is Cairns concerned by the current exchange rate fluctuation? Is the position short or long?
- If Cairns decides to use options would she use puts or call?
- Calculate the impact of the two hedging strategies and the unhedged position under the following three scenario at the end of January:
- a) USD=CAD
- b) USD= 0,90 CAD
- c) USD= 1,10 CAD
4 . Should Cairns hedge her position in USD? Why and why not? If you think she should hedge, which vehicle would she use?
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
