BASED ON DELTA’S EXPECTATIONS REGARDING CURRENCIES AND ASSUMING IN...

34. Based on Delta’s expectations regarding currencies and assuming interest rate parity holds,

should they most likely recommend hedging the portfolio’s GBP exposure using forward

contracts?

A. Yes.

B. No, because the euro is expected to depreciate by more than 0.35%.

C. No, because the euro is expected to appreciate by more than 0.35%.