Question: Based on the information in the table below, what is the proper financial hedging strategy with forwards? We sell _________ forward at the 1-year forward

Based on the information in the table below, what is the proper financial hedging strategy with forwards?
We sell _________ forward at the 1-year forward rate of ________
a. $ net cash flow when the French assets is worth 900, and the exchange rate is $1.35/ (2 points)
b. $ net cash flow when the French assets is worth 1,000, and the exchange rate is $1.50/ (2 points)
c. $ net cash flow when the French assets is worth 1,100, and the exchange rate is $1.65/ (2 points)
Based on the information in the table below, what is the

State P* Probability 1/3 1 2 1/3 990 1,200 1,450 $1.35/ $1.50/ $1.65/ 3 1/3

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