Question: Please can I get help in which better way to hedge using the following rates? Table 5: France: Exchange rate hedges compared: Forward rate Money

Please can I get help in which better way to hedge using the following rates?

Table 5: France: Exchange rate hedges compared:

Forward rate

Money market hedge locked in exchange rate

Option hedge breakeven exchange rate

$/

$ 1.15354/

$1.15402/

$ 1.15185/

From the table above, which hedging technique should be applied? Justify your answer and please mention whether it is long or short.

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