Question: Fill completely the table in Exhibit 9. Analyze different levels of hedge coverage and different mixes of forwards and options. Which strategy would you prefer?

Fill completely the table in Exhibit 9. Analyze different levels of hedge coverage and different mixes of forwards and options. Which strategy would you prefer? Why?

Exhibit 9 Template for Currency Rate and Sales Volume Impact on Company Bottom Line Final volume: 25000 % Cover 100% 100% 100% 100% 100% 75% 75% 75% 75% 75% 50% 50% 50% 50% 50% 25% 25% 25% 25% 25% 0% 0% 0% 0% Contracts 0% 25% 50% 75% 100% 0% 25% 50% 75% 100% 0% 25% 50% 75% 100% 0% 25% 50% 75% 100% 0% 25% 50% 75% Options 100% 75% 50% 25% 0% 100% 75% 50% 25% 0% 100% 75% 50% 25% 0% 100% 75% 50% 25% 0% 100% 75% 50% 25% 1.01 USD Exchange Rate (EUR/USD) 1.22 3,725 2,794 1,863 931 2,794 2,095 1,397 698 1,863 1,397 931 466 931 698 466 233 5,250 3,938 2,625 1,313 (1,525) (1,144) (763) (381) (1,144) (858) (572) (286) (763) (572) (381) (191) (381) (286) (191) (95) 1.48 (1,525) (1,144) (763) (381) (1,144) (858) (572) (286) (763) (572) (381) (191) (381) (286) (191) (95) (6,500) (4,875) (3,250) (1,625) Volume: forward rate 25000 1.22

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