Quote:
Originally Posted by Strange Brew
You are oversimplifying IMO. Should the Flames lock in today's exchange rate? Or is that locking in a bad rate? Yes hedging reduces risk and upside but if the Canadian dollar stays low, the Flames can't hedge their way out of it.
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That's not how it works. They would have hedged this season's expenses last summer, once they determined their expected revenues and salary structure.