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Table 5: Australia: Exchange rate hedges compared: (3 marks) Forward rate Money market hedge locked in exchange rate Option hedge breakeven exchange rate $/AUD 0.72641
Table 5: Australia: Exchange rate hedges compared: (3 marks)
Forward rate | Money market hedge locked in exchange rate | Option hedge breakeven exchange rate | |
$/AUD | 0.72641 | 0.72684 | 0.72975 |
Which hedging technique should be applied? Specify complete type of hedging instrument, for how long and on what currency/currency conversion (3 marks)
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