question 1 a and b in 1000 words question 2 a, b and c in 1000 words follow instructions given in the image.

question 1 a and be must be in 1000 words question 2 a, b and c must be in 1000 words. follow the instructions given in the image.

there is no sums. you have to explain answers using financial data which you can get from Google.

there is no sum provided by the instructor. anyways leave.

Question 1 a. With a close reference to the recent movements in Pound/Dollar spot exchange rate, critically discuss main causes of exchange rate volatility in the foreign exchange markets. b. How might exchange rate volatility impact international trade? (Use relevant financial data and charts to illustrate your answer). (1000 words) Question 2 a. Explain the nature of potential risks in international transactions and critically discuss how international traders might manage such risks via the derivative markets. b. Critically examine why a firm should consider hedging net payables or net receivables with currency options rather than: (i) forward contracts, and (ii) future contracts. c. What are the advantages or the disadvantages of hedging with currency options as opposed to future contracts in international financial transactions? (Give examples and use relevant financial charts to illustrate your answer). (1000 words) Question 1 a. With a close reference to the recent movements in Pound/Dollar spot exchange rate, critically discuss main causes of exchange rate volatility in the foreign exchange markets. b. How might exchange rate volatility impact international trade? (Use relevant financial data and charts to illustrate your answer). (1000 words) Question 2 a. Explain the nature of potential risks in international transactions and critically discuss how international traders might manage such risks via the derivative markets. b. Critically examine why a firm should consider hedging net payables or net receivables with currency options rather than: (i) forward contracts, and (ii) future contracts. c. What are the advantages or the disadvantages of hedging with currency options as opposed to future contracts in international financial transactions? (Give examples and use relevant financial charts to illustrate your answer). (1000 words)