1. The US dollar's current weakness is making hedging risk very .......... for corporates in North America, while their counterparts in Europe don't have the same advantage.

2. However, an active and strategic approach to hedging means that Europeans should not be .......... Didier Hirigoyen exhorts.

3. The current weakness of the US Dollar .......... major currencies has revived the debate around net investment hedging as well as earnings translation risk.

4. Although North American companies' hedging opportunities are now generally benefitting from favourable market conditions, European corporations may not have to .......... away from managing these risks.

5. A solid currency valuation assessment combined with a structured hedging framework can lead to a successful programme; this approach however .......... a slightly more dynamic methodology than is common in the corporate world.

6. Between internal policy constraints and accounting regulation, most companies have chosen to be mostly passive, implementing hedging strategies in a systematic manner or not at all, but rarely .......... into consideration market conditions in the decision making process.

7. While it is fair for companies to state that they are not involved in the currency market to 'punt' on the direction of exchange rates, it is also fair to say that hedging should not be done in .......... either.

8. While understanding the mechanisms and characteristics of the FX market is key to a sound hedging policy, remaining aware of currency valuation and including it in the risk management process can add value to a firm

9. The PPP currency valuation model, modified to reflect the assumption that a currency pair has, on average, traded at fair value over the 20 years preceding the measurement point, offers some .......... into the long-term behaviour of exchange rates and their tendency to mean-revert on an inflation adjusted basis.

10. For example, the EUR/USD exchange rate has, over the past 14 years, .......... in a broad band around the PPP implied rate.