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Using forwards to hedge currency risk: Example: An US firm needs to have AUD$1 million for importing materials from Australia in 3 months time. It

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Using forwards to hedge currency risk: Example: An US firm needs to have AUD$1 million for importing materials from Australia in 3 months time. It uses forward contracts on Australian dollars to hedge its position. The forward price is USD$1.1 per $AUD. In 3 months' time, is the firm better off from its hedging if the exchange rate in 3 months time is: USD$1.2 per SAUD USD$1.0 per $AUD

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