Why does Porsche hedge its foreign exchange exposure? Does it make sense, from the perspective of shareholders, for Porsche to hedge? Does it make sense from management's perspective? Are there potential differences in interest between management and shareholders regarding the hedging policy? $2.$ Suppose it is end of November $2007,$ and Porsche reviews its hedging strategy for the cash flows it expects to obtain from vehicle sales in North America during the calendar year $2009.$ Assume that Porsche entertains three scenarios: The expected volume of North American sales in $2009$ is $32,750$ vehicles. The low$-$sales scenario' is $30\%$ lower than the expected sales volume, and the high$-$sales scenario is $30\%$ higher than the expected sales volume. Assume, in each scenario, that the average sales price per vehicle is $$90,000$ and that all sales are realized at the end of November $2009.$ All variable costs incurred by producing and shipping an additional vehicle to be sold in North America in $2009$ are billed in $$ and amount to $60,000$ per vehicle. Characterize how Porsche's $$ cash flows, net of variable costs, obtained from its North American sales depend on the spot