Why do firms in the real world not hedge all foreign


1. Why do firms in the real world not hedge all foreign exchange risk? Is this necessarily a bad thing for their investors?

2. Suppose you are a U.S. oil company thinking about investing in Russia. (The Kremlin has a track record of changing contracts after the fact.) How would you finance your Russian operations?

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Finance Basics: Why do firms in the real world not hedge all foreign
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