The Euro is trading at near record lows relative to the US Dollar. Visit the FRED database (https://fred.stlouisfed.org/series/DEXUSEU) to review the USD/EU spot exchange rate.

1. Select one of the following European companies (Adidas, Carrefour, Fiat, Prada S.p.A. or Volkswagen). Have they taken any action to hedge against this foreign exchange risk? Explain .

2. What are some reasons why the Euro is trading at (nearly) parity to the USD? Explain.

Answer rating: 100% (QA)

Solution 1 Adidas Carrefour Fiat Prada SpA and Volkswagen are all European companies that have operations in the United States and are therefore expos... View the full answer