Question: The exposure coefficient b Cov(PS) VAR(S) in the regression P = a + bx S + e informs o captures the residual part of the

The exposure coefficient b Cov(PS) VAR(S) in the regression P = a + bx S + e informs o captures the residual part of the dollar value variability that is independent of exchange rate movements, O how much of a foreign currency to sell forward. O how many call options to write. o the part of the variability of the dollar value of the asset that is related to random changes in the exchange rate

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