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How to get cost differential when 100% done by a single party only.
Max Z = 107x1+x2+2x3 Subject to 14x1+x2-6x3+3x4=7 16x1+x2-6x3 3x1-x2-x3 x1,x2,x3,x4 >=0
Should a firm hedge? Why or why not? Answer: Firms may not need to hedge exchange risk in a perfect capital market. But firms can add to their value by hedging if markets are
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