Should a firm having international business hedge its currency exposure always fully with the optimal hedge ratio? Note that one or more of the suggested answers may be correct, or they may be all incorrect.

a. It depends on its risk management policy and the largest tolerated loss level

b. Yes, it should

c. Because markets are fully efficient, and share holders can hedge their risks including the currency risks, there should not be any active corporate risk management

d. It depends on the nature of its business and the competitive situation