Matt,
You are probably right about the simplification of hedging on currency
exchange companies play. However, any big international corporation
won't just hedge once during any specific quarter. How often they
sell short for "x" amount is a big issue, and what price to short is
another issue, thus, I believe every big comapny has a sophisticated
hedging model to determine:
(1) the time to sell short;
(2) what price;
Hence, when the U.S. dollar value moves lower, the company will
short the price lower. And, the more versatile the exchange rates,
the more frequently the hedging will be adjusted.
Therefore, it is obvious my view on currency exchange variable
impacting on company's revenue is correct. If you cannot accept my
view, I would be happy to explain more later.
Phil |
