It states the oil price and a non-US oil company’s home currency are positively correlated, and whether or not to use future on oil to hedge the oil price. Not sure why it said the company woud worse off if the oil price goes up, the reasons presented by the answer saids, (i) oil pice up, income up (ii) future on oil will make a loss - offset the gain from (i) (iii) since home currency would appreciate - so worse off for the company because it reduces volume… It seems purely qualitative, because the maginitude of the impact on bottom line from (i), (ii) and (iii) can be very different and the company may end up gaining since they may have higher profit margin… This is scary.