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Business, 16.04.2021 01:00 lilwolves1013osqd2o

Consider the three base cases in Exhibit 9: 100% hedging with options, 100% hedging with forward contracts, and no hedging at all. In a first step, assume the actual sales volume is known and always equals the forecasted volume of 25,000 students. How are profits affected under each of the three base cases relative to expected outcomes (based on an expected spot rate of USD/EUR 1.22)

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Consider the three base cases in Exhibit 9: 100% hedging with options, 100% hedging with forward con...
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