Last year we had a substantial income in sterling, which we hedged by selling sterling forward, in
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“Last year we had a substantial income in sterling, which we hedged by selling sterling forward, in the event sterling rose, and our decision to sell forward cost us a lot of money. I think that in the future we should either stop hedging our currency exposure or just hedge when we think sterling is overvalued.” As financial manager, how would you respond to your chief executive’s comment?
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Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
Question Posted:
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