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Using the graphs above and the numerical values and other information given in the text, answer the following questions. (2 points each)a. What is your exposure (in U.S. Dollars) of the 4 hedging stra
Using the graphs above and the numerical values and other information given in the text, answer the following questions. (2 points each)
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.