1. A japanies firm imports electric machines from Italy. Paying after three months in Euros, what should the japanies firm do to hedge its foreign exchange risk?
2. A US firm imports electric machines from Italy. Paying after three months in Euros, what should the US firm do to hedge its foreign exchange risk?
3. Which potential motives for starting an enterprise do you know? Describe.
4. If you buy 10,000 stocks of US company at a price of $ 1.2 and you bought a put option at a cost of $125 at a strike price of $ 1.2, what is your maximum/minimum profit and loss?