Currency risk Financial hedging Financial hedging and/or operational hedgin

g COURSEWORK QUESTION: 1) What is currency risk? Critically discuss different hedging techniques that can be used to manage currency risk. Use examples to support your discussion. (40% marks) 2) “Financial hedging is a substitute for long-term operational hedging.” Critically discuss. (20% marks) 3) Drawing on literature, critically discuss whether financial hedging and/or operational hedging will increase firm value. (30% marks) An additional 10% of marks will be available for presentation, referencing, spelling and language. Learning Outcomes Assessed The following learning outcomes are being assessed.. ?Compare the financial products available on international markets ?Devise and apply appropriate strategies using derivatives to manage currency risk. ?Critically evaluate the use of derivative instruments to manage currency risk.