Calculate the standard deviations of the unhedged values in H. In addition, calculate the standard deviation of hedged values in I. Discuss whether your strategy was successful.
Learning Objective: Apply Currency Futures to Hedge Exchange Rate Risk Directions: On 10/25/2021, your company receives 3.75 million Euros for selling products in Germany. Currently, the EUR/USD exchange rate is 1.1613. So if you convert this 3.75 mil Euros to USD today, it will be worth $4,354,931. You are extremely happy with the current exchange […]