What is your exposure of the hedging strategies

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Reference no: EM132257988

Question: Using the graphs above and the numerical values and other information given in the text, answer the following questions.

a. What is your exposure (in U.S. Dollars) of the 4 hedging strategies if, in 90 days, the exchange rate is $1.70 = £1? Show how you calculated your exposures.

1. Uncovered strategy: exposure

2. Forward Contract Strategy: exposure

3. Money market strategy: exposure

4. Put options strategy: exposure

5. In this scenario, discuss which is the best strategy? Justify your answer.

Information related to above question is enclosed below:

Attachment:- Exhibit.rar

Reference no: EM132257988

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