This document contains the solutions to the Fall 2019 International Financial Management exam (FINA2383). The solutions cover five problems related to international finance. Problem 2 involves calculating unlevered project exchange rates and analyzing inflation impacts. Problem 3 addresses currency exposure and hedging strategies for a Belgian company with Japanese Yen transactions, including forward contracts and borrowing in Yen. Problem 4 examines cash flow projections and hedging for a UK subsidiary, using forward contracts to manage currency risk and economic uncertainty. Problem 5 delves into the implications of forward exchange rate parity, exploring the relationship between forward premiums, expected appreciation rates, and variance. The solutions provide detailed calculations, explanations, and recommendations for financial strategies.
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