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The exposure coefficientb in the regressionP=a+bS+einforms: A).how much of a foreign currency to sell forward contract for hedge. B). how many call options to write
The exposure coefficientb in the regressionP=a+bS+einforms:
A).how much of a foreign currency to sell forward contract for hedge.
B). how many call options to write for hedge.
C). captures the residual part of the dollar value variability that is independent of exchange rate movements.
D). the part of the variability of the dollar value of the asset that is related to random changes in the exchange rate.
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