Question: Read Appendix A, Appendix B, and Exhibit 8, then explain: a. What is a delta exchange? b. What happens when GM buys a currency option

Read Appendix A, Appendix B, and Exhibit 8, then explain: a. What is a delta exchange? b. What happens when GM buys a currency option from a bank? c. Why is it important for GM to choose carefully an appropriate functional currency for a foreign subsidiary? Explain their choices and consequences of using USD vs. local currency as a subsidiarys functional currency

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