Questiona is it feasible for a firm to hedge without using, Ask an Expert

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Question:

(a) Is it feasible for a firm to hedge without using derivatives?

(b) Distinguish between natural hedging, cross-hedging and direct hedging.

(c) Mr Hedginglall regularly imports raw materials from USA to produce textile products. Recently, the rupee price of USD has been subject to major increases and international analysts expect a bullish stance on the USD. As a personal advisor to Mr Hedginglall, what could be the solution in case he decides to use forwards?

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Corporate Finance, Finance

Category:- Corporate Finance
Reference No.:- M9590566

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