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Business, 16.10.2019 01:20 browneyedbaby20

Suppose that the u. s. firm alcoa sells $3 million worth of aluminum to a british firm. if the exchange rate is currently $ 1.92 equals pound 1 and the british firm will pay alcoa pound1 comma 562 comma 500.00 in 90 days, answer the following questions. what exchange-rate risk does alcoa face in this transaction? a. a falling british pound. b. a falling dollar. c. a rising british pound. d. as long as the british firm pays alcoa, there is no risk. what alternatives does alcoa have to hedge this exchange-rate risk? a. alcoa can buy options contracts. b. alcoa can enter into a forward contract. c. alcoa can sell currency futures. d. all of the above. to hedge this exchange-rate risk, alcoa can ▼ buy 3 million buy 1,562,500.00 sell 1,562,500.00 sell 3 million pounds for dollars at the forward rate to hedge the risk of the pound ▼ rising falling .

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Suppose that the u. s. firm alcoa sells $3 million worth of aluminum to a british firm. if the excha...

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