Question: Table 7: Canada exchange rate hedges compared: (2 marks) Forward rate Money market hedge locked in exchange rate Which hedging technique should be applied? (3

Table 7: Canada exchange rate hedges compared: (2 marks) Forward rate Money market hedge locked in exchange rate Which hedging technique should be applied? (3 marks) Table 8: Value of the forward position (5 marks) Show answer in this row: ($ loss or gain for long/short position in forward) Show your workings in the columns below the answers

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