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Your U.S. firm has a £100,000 payable with a 3-month maturity. Which of the following will hedge your liability? Buy the
Posted: Thu May 19, 2022 6:23 am
by answerhappygod
- Your U S Firm Has A 100 000 Payable With A 3 Month Maturity Which Of The Following Will Hedge Your Liability Buy The 1 (42.66 KiB) Viewed 26 times
Your U.S. firm has a £100,000 payable with a 3-month maturity. Which of the following will hedge your liability? Buy the present value of £100,000 today at the spot exchange rate, invest in the U.K. at i£. Buy a put option £100,000 with a strike price in dollars. Buy a call option on £100,000 with a strike price in dollars. Take a short position in a forward Sell the present value of £100,000 today at the spot exchange rate, borrow in the U.K. at i£. Take a long position in a forward contract on £100,000 with a 3-month maturity.