Table 5 Australia Exchange rate hedges compared (3 marks) Forward rate Money market hedge locked in exchange rate Option hedge breakeven exchange rate $ AUD 0 72641 0 72684 0 72975 Which hedging technique should be applied Specify complete type of hedging instrument, for how long and on what currency currency conversion (3 marks)

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Question: Table 5: Australia: Exchange rate hedges compared: (3 marks) Forward rate Money market hedge locked in exchange rate Option hedge breakeven exchange rate $/AUD 0.72641

Table 5: Australia: Exchange rate hedges compared: (3 marks)

	Forward rate	Money market hedge locked in exchange rate	Option hedge breakeven exchange rate
$/AUD	0.72641	0.72684	0.72975

Which hedging technique should be applied? Specify complete type of hedging instrument, for how long and on what currency/currency conversion (3 marks)

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