Question: Caterpillar's global operations expose it to foreign exchange risks, which could influence its capital structure by requiring hedging strategies and flexible financing options. To the

Caterpillar's global operations expose it to foreign exchange risks, which could influence its capital structure by requiring hedging strategies and flexible financing options. To the extent that foreign exchange risks are exogenous and can be hedged using financial derivatives, Caterpillar can continue to have high debt, since the impact of foreign exchange risks will be mitigated. Question, how do you see foreign exchange risk and the use of derivatives as affecting leverage

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