Problem
Catalba Industries is now in the process of providing price quotes to the three requests. Answer the following:
a) What currencies should be used to state each of the three quotes for the countries? Why?
b) The CEO would like to consider using hedging strategies for each of the offers. For each offer, devise a forward market hedge, money market hedge, and an options hedge strategy. Be specific as to the rates, timings and the financial institutions that you would employ.
c) Which strategy would you recommend and why?
The discussed countries are U.K , Hungary and Madagascar in our case.