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International finance/ case study report, 3 pages

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These are the case question, must be answered

  1. Why is Cain concerned by the exchange rate fluctuation?  Is her position long or short?
  2. If Can decides to use options would she use a put or a call?
  3. Calculate the impact of the two hedging strategies and the unhedge positionunder the following three scenarios at the end of January:
  4. US$ = C$
  5. US$ = C$0.90
  6. US$ = CS1.10  (to simplify, ignore difference in time value over the 3-month period.)
  7. Should Cain hedge her position in US$?  Why or why not?
  8. Which hedge should she use?
  9. If you chose the option, specify the option price.

The paper should consist a brief description of the case, an explanation of the problem, alternative solutions, your recommendations, including materials, such as spreadsheets, needed to justify your recommendation

The case (4 pages long)

Pixonix Inc. – Addressing Currency Exposure.pdf

Ps. No resources is needed.

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