【正确答案】The five steps are: a) Identify the distribution of future exchange rates, b) estimate the sensitivity of revenues and operating expenses to changes in exchange rates, c) determine the desirability of hedging, given the firm’s risk management policy, d) identify the hedging alternatives and evaluate the cost/benefit performance of each alternative, given the forecasted exchange rate distributions, and e) monitor the position and revisit steps 1 through 4 as necessary.