A us insurance firm must pay 75000 in 6 months the

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28. A U.S. insurance firm must pay €75,000 in 6 months. The spot exchange rate is $1.32 per euro, and in 6 months the exchange rate is expected to be $1.35. The 6-month forward rate is currently $1.36 per euro. If the insurer's goal is to limit its risk, should the insurer hedge this transaction? If so how? AACSB: Reflective Thinking Blooms: Understand Difficulty: 3 Hard Learning Objective: 19-03 Implement international investment strategies. Topic: International Investing: Risk, Return, and Benefits from Diversification
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