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You invest in £20 million in British bonds paying 10% interest that will mature in 1 year. You are afraid that $ will be
Posted: Sun Jul 03, 2022 12:55 pm
by answerhappygod
- You Invest In 20 Million In British Bonds Paying 10 Interest That Will Mature In 1 Year You Are Afraid That Will Be 1 (39.02 KiB) Viewed 13 times
You invest in £20 million in British bonds paying 10% interest that will mature in 1 year. You are afraid that $ will become stronger in the future against the £. The futures price is £1 = $1.60. How can you hedge against exchange rate risk using £ futures? I contract is for £62,500. Osell 320 contracts Obuy 352 contracts O sell 352 contracts O sell 220 contracts Obuy 220 contracts buy 320 contracts