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Fig. 1. The fundamental decision problem. For policy iB, Bi represents the domestic amount allocated tooffset uncertain future liquidation Li
Table 1
Fig. 2. Probability that the Forward Contract Approach is less costly on average than the Naı¨veApproach for time frames of 1 to 30 years.
Fig. 3. Distributions of the VNF functions for the German mark, Japanese yen, British pound, and the aggregate of the three currencies.
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