The human resources partner at SB, James Matthew, has asked you to produce a brief note for use by the members of the interview panels at forthcoming partnership interviews. There will be multiple interview panels made up of various partners. To ensure consistency during the interview process James has composed a list of questions to be put to all candidates at interview. He would like you to provide a brief answer to each of the questions set out below for use by the panel members. (a) Do the hedging benefits of derivatives in the context of foreign exchange risk out-weigh the risks posed by the speculative use of such derivatives?