Question: (a) Gold, as a commodity, offered almost a perfect hedge during the Global Financial Crisis. Do you think this is the case during the COVID

(a) Gold, as a commodity, offered almost a perfect hedge during the Global Financial Crisis. Do you think this is the case during the COVID 19 pandemic? Explain using data and/or charts. (5 marks) (b) An Australian company requires USD but does not have access to direct USD borrowing or finds it prohibitively expensive. The company decides to borrow in Australian dollar at 90-day BBSW and enter a cross-currency basis swap to USD based on 90-day (a) Gold, as a commodity, offered almost a perfect hedge during the Global Financial Crisis. Do you think this is the case during the COVID 19 pandemic? Explain using data and/or charts. (5 marks) (b) An Australian company requires USD but does not have access to direct USD borrowing or finds it prohibitively expensive. The company decides to borrow in Australian dollar at 90-day BBSW and enter a cross-currency basis swap to USD based on 90-day (a) Gold, as a commodity, offered almost a perfect hedge during the Global Financial Crisis. Do you think this is the case during the COVID 19 pandemic? Explain using data and/or charts. (5 marks) (b) An Australian company requires USD but does not have access to direct USD borrowing or finds it prohibitively expensive. The company decides to borrow in Australian dollar at 90-day BBSW and enter a cross-currency basis swap to USD based on 90-day (a) Gold, as a commodity, offered almost a perfect hedge during the Global Financial Crisis. Do you think this is the case during the COVID 19 pandemic? Explain using data and/or charts. (5 marks) (b) An Australian company requires USD but does not have access to direct USD borrowing or finds it prohibitively expensive. The company decides to borrow in Australian dollar at 90-day BBSW and enter a cross-currency basis swap to USD based on 90-day
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