Question: d. What does a convex tax code imply? How does a company benefit from hedging if it faces a convex tax code? If the corporate

d. What does a convex tax code imply? How does a company benefit from hedging if it faces a convex tax code? If the corporate tax rate is flat, would a firm benefit from hedging? and Why does an increase in the (historic) volatility of foreign exchange rates increase the value of foreign currency options?

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