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Estimate the firm foreign exchange exposure

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Reference no: EM132789722

Consider an Italian firm, Calcio Inc., that operates in the US, Brazil, Hong Kong, and Japan. Provide a simple model that the managers of Calcio Inc. firm can use to estimate the firm's foreign exchange exposure. Be as detailed as possible. Explain what the model can reveal about the nature of the Calcio Inc.'s exposure to foreign currency risk.

Reference no: EM132789722

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