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a)Identify and explain the three main categories of risk that a company may be exposed to from movements in exchange rates, Illustrate your answer with an example for each category

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a)Identify and explain the three main categories of risk that a company may be exposed to from movements in exchange rates, Illustrate your answer with an example for each category. (12 marks)
e) If the contract was cancelled fully explain the consequences if you had hedged by using the forward contract or the option contract. You should illustrate your answer with appropriate numerical examples. (12 marks)
f) Evaluate the use of forward contract and currency options to hedge transaction risk and advise the management of Glamour Plc on the best course of action in this case. (9 marks)
a) Explain how a SWAP operates and discuss the ways in which a multinational firm may benefit from its use. (9 marks)
arks) b) Describe three interest rate hedging techniques apart from SWAPs that the Financial Director may include in her report. 111 marvel