The CEO of Massmart Mitchell Slape has requested you to include a section in your report in which you address how hedging is used in reducing risk exposures and whether it should be applied at Massmart. Discuss the contents of your response to him.

Massmart is an African retail and wholesale group with widely recognised and differentiated formats, represented in 408 stores in 13 sub-Saharan countries. It has leading market shares in the general merchandise, liquor, home improvement and wholesale food markets. Its key foundations of high volume, low cost, responsible business and operational excellence enable orice leadership. For more information about the organisation visit: https:llwww.massmart.co